Implementation of GST in Customs – Changes in BE/SB Declaration
PUBLIC NOTICE NO. 24/2017 Dated:- 27-6-2017 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-ED1
Date: 27/06/2017
PUBLIC NOTICE NO. 24/2017
Subject: Reg.
Attention of Importers/Exporters, Custom Brokers & Trade is invited to Implementation of GST from 1st July, 2017. Reference is also invited to Taxation Law (Amendments) Act, 2017 (18 of 2017), bringing out amendments in Customs and Central Excise legislations in alignment with GST implementation. Further reference is invited to various decisions in GST Council meeting , documentation of the same in CBEC Website and also the advisory issued by Member(Customs) vide D.O. letter dated 20.6.17 on Customs related matters on introduction of Goods and Service Tax regime and PN 23/2017 issued by Custom House, Visakha
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entral Government through a Notification under Section 5 of IGST Act, 2017. The percentage rate of integrated tax in respect of goods specified will be in respective schedules. Similar is the case for GST Compensation Cess Schedule under Section 8(2) of GST (Compensation to States) Act, 2017. The importer shall have to quote the notification number and serial number in the format (Schedule suffixed by serial No of the schedule) for levy of IGST rate. For instance, under Schedule II and for an item under Serial Number 3, the serial number in the declaration should be "II3".
(iii) The IGST Exemption can also be availed if applicable, by quoting relevant notification issued under section 6 of IGST Act or Customs Act as applicable. Similar is the case for Compensation Cess under Section 8(2) Of GST (Compensation to States) Act, 2017.
To effect the above changes, the fields have been used/added in BE Declaration (SBE Table)- other Additional duties in Section 3(CTA): Fields in
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ess (Customs Notfn.)*
Duty Flag as G; Addl Duty Flag as P; Ex.Flag as C
* In this case, Customs Exemption Notification should be referred.
5. Declaration of CETH:
The Central Excise Tariff shall get stand amended w.e.f. the day the Taxation Law (Amendments) Act, 2017 comes into force. In such a scenario, the Central Excise levy is applicable on certain goods, while it is not applicable on certain goods. Wherever the additional customs duty (CVD) is levied, CETH as applicable may be declared. In case of Non- Applicability of CETH, “NOEXCISE” should be quoted.
6. Identification of GST Beneficiary:
To avail IGST Benefits on Imports, declaration of State Code and GSTIN in Bill of Entry is mandatory. The same needs to be added in CTX Table of the BE Declaration. In any case of non-availment of IGST, State Code along with one of the other Identity proof listed below needs to be provided, so as to enable apportionment to the respective states.
Description
GSTIN-Imp.
Regn_Type
Type o
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ly, Physical application along with supporting documents needs to be submitted as per laid out procedure for refund of Special Additional Duty of Customs. With the implementation of GST, there would be seamless credit flow of IGST to the GSTIN Beneficiary mentioned in the Bill of Entry on filing of Returns. However to avail the IGST credit, the importer needs to mention the Port Code, Bill of Entry Number, Bill of Entry Date, aggregate IGST Taxable value, Total IGST Amount, Total GST Compensation Cess in the GST Return which would be validated online with ICEGATE.
For the benefit of the Importers, the above details would be made available in the Final copy of the Bill of Entry.
8. IGST Availment in case of Manual Bill of Entry :
Since all the validation related to IGST refund or flow of IGST credit would happen electronically between Customs EDI and GSTN, it is imperative here that the required data is captured electronically without fail for all the imports and exports whether or
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bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit; or
(b) he may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied.
10. Under the GST Laws, taxpayers would be filing their outward supply returns on GSTN for all the supplies made by them including exports. For exports, they will be required to quote the Shipping Bill and export invoice details which shall be validated by the Customs EDI system. The confirmation of the export by Customs shall be made once the EGM is filed and closed (in case of 'CDs. it should be Gateway EGM„ not train Summary). Based on this validation only the taxpayer (exporter) shall be granted refund of the IGST paid by him on the exported goods. This validatio
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shall have to be captured to either sanction refund in case exports are made on payment of IGST or, give the proof of exports in case exports were made under bond/LUT without payment of IGST.
IGST Payment Status – To indicate whether the exports are being made on:
P – Payment of IGST
LUT – Under Bond or LUT
NA – Where IGST is not applicable, i.e. the supply is non-taxable; including exports made by non GST registered exporters
13. Taxable Value and IGST Paid
Since the actual quantity and value of the goods finally exported may sometimes be at variance with that indicated on the export invoice, these particulars have to be individually declared for every item. Here, Taxable Value is the value of the item actually being exported on which IGST has been paid. In case of short shipments due to shut out/back to town, IGST has to be calculated proportionately item wise in the invoice based on the actual quantity of exports.
This is further explained by the following illustration:
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be limited to the IGST paid on the goods actually exported, i.e. ₹ 44,400 in the above illustration.
14. Export Invoice & Item:
Export invoice should be compliant to GST Invoice Rules (not exceeding sixteen characters containing only alphabets, numerals and two special characters ( “/” and “-“).
The export invoice should be issued by the supplier cum exporter in compliance with the GST Invoice Rules. It may also be noted that as per the GST Invoice Rules, in case of export of goods or services, the invoice shall carry an endorsement “SUPPLY MEANT FOR EXPORT ON PAYMENT OF INTEGRATED TAX” or “SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX”, as the case may be, and shall also contain the following details: (i) name and address of the recipient;(ii) address of delivery; and (iii) name of the country of destination.
Other details to be given in the invoice table of the Shipping Bill shall include Third Party remittance details as per
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ods shall be claimed."
DBK003 – "I declare that CENVAT credit on the inputs or input services used in the manufacture of the export goods has not been carried forward in terms of the Central Goods and Services Tax Act, 2017."
For Every Item where DBK claimed is suffix as A or C, an exporter is required to declare two codes only, i.e. (1) DBK001 or DBK002 and (2) DBK003
16. Container Details
Certain details about the Containers are required in line with the International customs communication as well as with a view to implement e-way bill module in future. Some of this information has been kept optional for now like Movement Document Number etc. Fields which have to be mandatorily declared are:
Container Size – As per the codes specified in ISO Directory available on icegate website at https://www.icegate.gov.in/SWlFT/single window docs.html
Seal Type Indicator – BTSL, RFID, ESEAL (mandatory for factory stuffed goods meant for exports).
17. Transitory Provisions
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d Organ, Tissue, or Fluid
DCH400
For Human Medical Use as a Non-Food Product under Controlled Distribution
DCH800
For Research use a human medicine
DCX200
For manufacture/processing as a human or veterinary medicine (Manufacture/Actual Use)
DCX900
Drugs & Cosmetics -For personal consumption
FSA100
For Animal Food or Feed (Trading/ commercial distribution)
FSA200
For manufacture/processing as a Animal Food/Feed (Manufacture/Actual Use)
FSA800
For use research use as animal Food
FSA900
Foods & Supplements -For Personal use
FSH100
Food – For Consumer use under commercial distribution (Trading)- Retail or wholesale
FSH200
Food – For manufacture/ commercial Processing (Manufacture/Actual Use)
FSH700
Food -For Internal use in Hotels-Restaurant
FSH710
Food -For Public Display or Exhibition
FSH750
Food -For use in International Sports Events
FSH800
Food -For Research Use
FSH900
Food – For personal consumption
FSH910
Food – For distribution in a na
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-For Immediate Slaughter
LVA500
Live Animal -For use as Fertilizers or soil promoters
LVA710
Live Animal -For display in Zoo
LVA760
live Animal -For Circus or Travelling Exhibition or games or show
LVA800
Live Animal -For Research Purposes
LVA900
Live Animal -For Personal use
LVA950
Live Animal -For Re Export
LVPIOO
Live Plants -For Propagation
LVP400
live Plants -For Germplasm
LVP500
Live Plants -For use as Fertilizers or soil promoters
LVP730
Live Plants -For a display in a Botanical Garden
19. The complete List of ISO Codes for Containers is available on the icegate website at https://www.icegate.gov.in/SWlFT/single window docs.html
20. The difficulty in the implementation of the above changes may be brought to the notice of System Manager or Assistant Commissioner (EDI) Custom House Visakhapatnam.
D r. DK SRINIVAS
COMMISSIONER OF CUSTOMS.
Sd/-
(S. Anil Kumar)
Additional Commissioner of Customs
Circular, Trade Notice, Public Notice, Instruct
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