GST roll out and preparations thereof
PUBLIC NOTICE NO. 20/2017 Dated:- 22-6-2017 Trade Notice
Customs
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
OFFICE OF THE COMMISSIONER OF CUSTOMS
CUSTOM HOUSE, NEW HARBOUR ESTATE, THOOTHUKUDI – 628004.
C. No. VIII/48/06/2016-Cus.Pol.
Date: 22.6.2017
PUBLIC NOTICE NO. 20/2017
Subject:- reg.
Attention of all Exporters [Importers/Custom Brokers/ Clearing Agents / Steamer Agents/Shipping agents/Customs Cargo Service Providers/ Trade and Industry and Public is invited for the proposed roll out of Goods and Service Tax(GST) from 01.07.2017.
2. Customs too has a major stake in the early implementation of GST as IGST would begin to be levied on the imports from the very first day, the credit of which shall be available to the importers. Similarly, the refund on export of goods is contingent upon filing of (a) shipping bill accompanied by the GST invoice and (b) export general manifest. The changes imminent on the Customs side would thus be
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ensure hassle free movement of the goods across borders.
4. Levy of Duties
1. Sub-section (1) of section 5 of the Integrated Goods and Service Act, 2017 states that 'Subject to the provisions of sub-section(2), there shall be levied a tax called the integrated goods and services tax on all inter-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the Central Goods and Services Tax Act and at such rates, not exceeding forty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person:
Provided that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs 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 un
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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) on any imported article where such tax 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 (1) 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 sub-section (7) or the cess referred to in sub-section (9).
(9) Any article which is imported into India shall, in addition,
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eing enforce as an addition to, and in the same manner as, a duty of customs, but does not include the tax referred to in sub-section (7) or the cess referred to in sub-section (9).
5. It is requested that the Officers and the trade are kept well informed about the above new levies and the levies that are being subsumed, replaced or repealed. In this context, it is further requested that the fine-print of Taxation Laws (Amendment) Act, 2017 is read by the field Officers in detail. Customs ICES 1.5 application is also being modified to ensure that the new levies are applied and collected on all the imports from July 1st.
Changes in Bill of Entry and Shipping Bill Forms:
6. Since new provisions for levy of IGST and GST compensation cess on imports have been introduced under the Customs Tariff Act, 1975, Bill of Entry, Shipping Bill and Courier Regulations and Forms, both Manual and EDI, have been suitably modified and all such modified forms are available on the official website of C
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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. 09/2018 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 in the BE forms to capture details like GSTIN, PAN, State code etc. of the importer. Similar changes will also be incorporated for imports at SEZ and imports through Courier. In case of Courier, GSTIN for GST registered consignees or PAN for non-GST registered consignees, as applicable, has to be quoted in the bill of entry filed by the Courier agency, wherever goods are subject to IGST. For the time
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importer to claim the corresponding credit in the GST return.
EDI Shipping Bill:
9. The Integrated Goods and Services Tax Act, 2017, under section 16 provides that export of goods shall be 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, 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 fil
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e the declarations made by the exporter on the GST return to confirm export.
12. 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 Shippinq Bill:
13. Since all the validation related to IGST refund or flow of IGST credit shall happen electronically between Customs EDI and OSTN, it is imperative hereon that the required data is captured electronically without fail for all the imports and exports whether or not through EDI location In case of EDI locations, Board has issued instructions vide F. No. 401/81/2011-Cus Ill dated 2nd June 2017 wherein it is envisaged that any manual bill of entry or shipping bill in EDI locations needs to be filed following the procedure laid out in the circular. Subsequently, Directorate of Systems issued ICES Advisory 009/2017 (GST)
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