GST roll out and preparation there of
PUBLIC NOTICE No. 08/12017 Dated:- 23-6-2017 Trade Notice
Customs
OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS
AIRPORT AND AIR CARGO COMMISSIONERATE
II Floor, AIR INDIA SATS AIR FREIGHT TERMINAL,
KEMPEGOWDA INTERNATIONAL AIRPORT,
BENGALURU – 560300.
C No VIII/48/90/2017 Air cus Tech.
Dated 23.06.2017
PUBLIC NOTICE No. 08/12017 DATED 23.06.2017
Sub: GST roll out and preparation there of- Reg.
Attention of the trade and industry, exporters, Importers and other stake holder is invited to the above mentioned subject.
2. With the GST set to be rolled out on 1st July 2017, the final phase of preparation for its implementation is in full swing. Changes in Customs law and procedure are accompanied by changes in the EDI system so as to effectively implement the IGST law from 01.07.2017. The changes are broadly in the following areas:
* Levy of Duties
1. Sub-section(l) of section 5 of the Integrated Goods and Services Act, 2017 stat
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applicable) in addition to the Customs duties such as Basic Customs Duty etc. However, the levy of CVD and SAD shall cease to exist on imported goods other than those on which Central Excise Duty/ VAT continues to be levied even in the new regime. In this regard necessary amendments have been made in section 3 of the Customs Tariff Act, 1975 vide the Taxation Laws (Amendment) Act, 2017 (18 OF 2017) dated the 4th May, 2017 wherein under sub-section (7), sub-section (8), sub-section (9) & sub-section (10) of section 3 of the Customs Tariff Act, 1975, it has been provided as below:
(7) Any article which is imported into India shall, in addition, be liable to integrated tax at such rate, not exceeding forty percent, as is leviable under section 5 of the Integrated Goods and Services Tax Act, 2017 on a like article on its supply in India, on the value of the imported article as determined under sub-section (8).
(8) For the purposes of calculating the integrated tax under sub-section (7)
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States) Cess Act, 2017 on a like article on its supply in India, on the value of the imported article as determined under sub section (10).
(10) For the purposes of calculating the goods and services tax compensation cess under sub-section (9) on any imported article where such cess is leviable at any percentage of its value, the value of the imported article shall, notwithstanding anything contained in section 14 of the Customs Act , 1962, be the aggregate of-
(a) the value of the imported article determined under sub-section (I) of section 14 of the Customs Act , 1962 or the tariff value of such article fixed under sub-section (2) of that section, as the case may be; and
(b) any duty of customs chargeable on that article under section 12 of the Customs Act, 1962, and any sum chargeable on that article under any law for the time being in force as an addition to, and in the same manner as, a duty of customs, but does not include the tax referred to in subsection (7) or the cess r
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s would be cross checked with the Customs EDI system. Therefore, with effect from 01.07.2017, it would be mandatory for the importers to declare their GSTIN, i.e., the GST registration number on the Bill of Entry if they wish to claim the credit of the IGST paid on the imported goods. Importers not registered with GSTN will be required to declare their PAN along with their state code as per the Census of India. This is required for transfer of the IGST paid by the non GST importers to the account of the "consumption" state. Diplomatic organizations or UN bodies can quote their UIN issued by GSTN on the Bill of Entry. In this regard, DGFT has also issued Trade Notice No. 09 dated 12.06.2017 wherein it has been indicated that with regard to importer/exporter registered with GSTN, importer/ exporter would need to declare only GSTIN at the time of import and export of goods and the importers who are not registered under GST would use their PAN for imports. Changes have been made
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the levy notification as well as the exemption notification (wherever applicable) in respect of each imported item for application of correct rate. The IGST and Compensation Cess notifications directories are being developed in the EDI System to automatically calculate the levy on imported goods. The total IGST and Compensation Cess paid will be published on every Bill of Entry which can be quoted by the importer to claim the corresponding credit in the GST return.
* EDI Shipping Bill:
6. The Integrated Goods and Services Tax Act, 2017, under section 16 provides that export of goods shall be zero rated supply and credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply. The section further lays down that a registered person making zero rated supply shall be eligible to claim refund under either of the following options, namely:
(a) he may supply goods or services or both under bond or Letter of Undertaking, subjec
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act as the proof of export in case the exporter has made the supply under bond or LUT without payment of IGST.
8. In order to facilitate proof of export, Shipping Bill forms have also been modified to capture details such as GSTIN of the exporter, GST export invoice number etc. The exporter shall have to declare item-wise taxable value and corresponding IGST on the Shipping Bill. All these details will be used to validate the declarations made by the exporter on the GST return to confirm export.
9. For the time being, importers/ exporters are advised to declare GSTIN, PAN and IEC while filing document for import/ export of goods. However, over a period of time, declaration with regard to only GSTIN and PAN shall be required in the Shipping Bill.
* Manual Bill of Entry and Shipping Bill:
10. Since all the validation related to IGST refund or flow of IGST credit shall happen electronically between Customs EDI and GSTN, it is imperative hereon that the required data is captured el
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