CHANGES IN CUSTOMS LAW AND PROCEDURE DUE TO GST REGIME
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 28-6-2017
The Goods and Services Tax is going to subsume all indirect taxes levied by Central Governments and State Governments. The GST, as already aware by all, is of central tax, State tax, Union territory tax and integrated tax.
Integrated tax
Integrated tax, according to section 5(1) of IGST Act, 2017 is leviable on all inter-State supplies of goods or services or both. This tax is not leviable on the supply of alcoholic liquor for human consumption. The value on which the integrated tax shall be leviable is to be computed in accordance with section 15 of CGST Act, 2017. The rate of tax shall not exceed 40%. The rate may be fixed by the Government on the recommendations of the GST Council.
The integrated tax shall be levied on goods imported into India and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1
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y in India, on the value of the imported article as determined under Section 3(8).
Section 3(8) provides that for the purpose of calculating the integrated tax under section 3(7), the value of imported article shall be the aggregate of-
* 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
* 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).
Section 3(9) provides that any article which is imported into India shall, in addition, be liable to GST compensation cess at such rate on a like article on its supply in India, the value of the importe
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ed forms are available in the website of the Department. The letter advised all importers, exporters, customs brokers, customs clearance software providers and other stakeholders to get themselves familiar with the modified forms.
Change in EDI bill of entry
It is indicated that the information in the bill of entry would be reconciled with their returns filed on GSTN. By that the credit claimed in their return in respect of IGST paid on imports would be cross checked with the Customs EDI system. It is made mandatory for the importers to declare their GSTIN number on the Bill of Entry if they wish to claim the credit of IGST paid on the imported goods.
* The importer who is not registered with GST system is to declare his PAN along with their State code as per the Census of India, which is required for transfer of IGST paid by them to the account of the Consumption State.
* Diplomatic organization or UN bodies are to quote their UIN on the Bill of Entry;
DGFT issued trade notic
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shed on every Bill of Entry which can be quoted by the importer to claim the corresponding credit in the GST return.
Change in EDI Shipping Bill
Section 16 of IGST Act, 2017 provides that export of goods shall be zero rated supply. Credit of input tax maybe availed for making zero-rated supplies, notwithstanding such supply may be made an exempt supply.
The exporters are required to quote the Shipping Bill and export invoice details in the GST return. The same shall be validated in the Customs EDI system. The confirmation of the export details shall be made once the EGM is filed. The exporter shall be granted refund of IGST paid by him on the exported goods based on the validation by Customs EDI system. This validation is also a proof of export in case the exporter has made the supply under bond or LUT without payment of IGST.
The Shipping Bill forms have also been modified to capture details such as GSTIN of exporter, GST export invoice number etc., The exporter is to declare item
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are matched and linked with the cargo declared in bill of entry;
* The declaration shall then move to Assistant Commissioner/Deputy Commissioner of the concerned group who may approve the job in the role of ACL in ICES after records the reasons for manual bill of entry and the reference no. of file approval by Commissioner;
* A six digit bill of entry number would be generated and assigned to the declaration after the concurrence of the AC/DC;
* The manual BoE shall be filed by the importer quoting the assigned bill and will be assessed on paper as per usual process;
* After assessment by Appraiser and AC or DC concerned the ACL has an option to enter the total duty and licence associated, if any with this declaration in ICES 1.5;
* The manual debit of licence is to be invariably done in the licence ledger prior to this process;
* A challan of duty amount to be paid, post adjustment etc., would be generated in the system and be available for payment in the e-payment portal
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