Implementation of GST in Customs – Changes in BE/SB Declaration
PUBLIC NOTICE No. 21/2017 Dated:- 27-6-2017 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: 27.06.2017
PUBLIC NOTICE No. 21/2017
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 20.06.17 on Customs related matters on introduction of Goods and Service Tax regime.
2. The legislations referred above have necessitated chang
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rcentage rate of integrated tax in respect of goods specified are in respective schedules. Similar is the case for GST Compensation Cess Schedule under Section 8(2) of CST (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 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 Bill of Entry
For IGST
For GST C.Cess
Notification Number
IGST Levy Notfn No
GST Comp.
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se, 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, UNOEXCISE” 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 CT X 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 of IEC
to be declared
GST Benefit
(1)
(2)
(3)
(4)
(5)
GSTIN
Normal
G
TP,CM
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ocuments 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 not they are made through EDI locations. In case
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thout 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 validation shall also act as the proof of export in case the exporter has made the supply under bond or LUT without payment of IGS
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nt 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 CST 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:
Illustration:
An exporter raises an export invoice as below:
Item
Quantity (un
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4,400 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 ( 'T' 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 RBI requirements, Terms Place(INCOTERMS), End Use (as per the
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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 (enclosed as Annexure-Il)
Seal Type Indicator – BTSL, RFID, ESEAL (mandatory for factory stuffed goods meant for exports).
17. Transitory Provisions for BE:
The Advance/Prior BE filed before the implementation of GST and regularized for implementation may not have relevant declarations for Du
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man Medical Use as a Transplanted Organ, Tissue, or
Fluid
For Human Medical Use as a Non-Food Product under Controlled
Distribution
For Research use a human medicine
For manufacture/processing as a human or veterinary medicine
(Manufacture/Actual Use)
Drugs & Cosmetics -For personal consumption
DCX900
FSA100
FSA200
For
For Animal Food or Feed (Trading/ commercial distribution)
manufacture/processing
as a Animal
Food/Feed
FSA800
(Manufacture/Actual Use)
For use research use as animal Food
FSA900
Foods & Supplements -For Personal use
FSH100
Food
–
For Consumer use under commercial distribution
(Trading)- Retail or wholsale
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
FSH800
FSH900
FSH910
FSH920
FSH930
GNX100
Food -For use in International Sports Events
Food-For Research Use
Food – For personal consumption
Food
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