Customs – GST roll out and preparations thereof – Advisory on Customs related matters
PUBLIC NOTICE No. 23/2017 Dated:- 23-6-2017 Trade Notice
Customs
GOVERNMENT OF INDIA
MINISTRY OF FINANCE : DEPARTMENT OF REVENUE
OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS
CUSTOM HOUSE, PORT AREA, VISAKHAPATNAM – 530 035
F. No. S2/08/2017-EDI
Date: 23/06/2017
PUBLIC NOTICE No. 23/2017
Subject: Reg.
Attention of all the Importers, Customs Brokers and the Members of the Trade is invited to the proposed GST roll out from 1st July, 2017. With GST set to be rolled out on 1st July 2017, the following advisory on changes in Customs related matters is given as below:
2. The changes are broadly in the following areas.
* Levy of duties: IGST and Compensation Cess (wherever applicable) to be levied on imports
* Change in Bill of Entry and Shipping Bill forms: TO capture additional details required for validation with GSTN in case of IGST refund claims (export) or availability of IGST
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toms Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962"
ii) Thus, with effect from 01.07.2017, all imported goods shall attract IGST (and compensation cess, wherever applicable) in addition to the Customs duties such as Basic Customs Duty etc. However, the levy of C VD 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 (1 8 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:
Sub Section (7) : Any article which is imported into India shall, in addition, be liable to integrated tax at such r
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, but does not include the tax referred to in sub-section() or the cess referred to in sub- section(9)
Sub Section (9): Any article which is imported into India shall, in addition, be liable to the goods and services tax compensation cess at such rate, as is leviable under section 8 of the Goods and Services Tax(Compensation to 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 OW.
Sub Section (10): For the purpose 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 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
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bsite of CBEC(www.cbec.gov.in). All importers, exporters, Customs Brokers, Customs clearance software providers and other stakeholders are advised to get themselves familiar with the modified Forms. It is emphasized that other than the changes in the declaration, rest of the procedure with regard to clearance of imports and exports would remain the same.
EDI Bill of Entry:
5. It may be noted that with the introduction of GST, information in the Bill of Entry would be reconciled with their returns filed on GSTN. Accordingly, credit claimed in their GST Return in respect of IGST paid on imports 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 C
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time being, importers/exporters are advised to declare GSTIN, PAN and IEC while filing documents for import/export of goods. However, over a period of time, declaration with regard to only GSTIN and PAN shall be required in the Bill of Entry.
6. For calculating the IGST or Compensation Cess, chapter wise, rate wise GST schedule, IGST exemption, concession list and GST Compensation Cess rates are already available on the official website of CBEC. In this regard, notifications for (a) levy and (b) exemption shall be issued by TRU shortly. The importer shall have to quote the relevant number of 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
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axpayers would be filing their outward supply returns on GSTN for all the supplies made by them including exports. For the exports, they will be required to quote the Shipping Bill and export invoice details in the GST return. The information provided in the return with regard to export of goods shall be validated by Customs EDI system. The confirmation of the export details by Customs shall be made once the EGM is filed, The taxpayer (exporter) shall be granted refund of the IGST paid by him on the exported goods based on the validation by Customs EDI system. This validation shall also act as the proof of export in case the exporter has made the supply under bond or LUT without payment of IGST.
9. 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
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