Implementation of GST in Customs – Changes in BE/SB Declaration
Public Notice: 72/2017 Dated:- 27-6-2017 Trade Notice
Customs
OFFICE OF THE COMMISSIONER OF CUSTOMS (Export-I)
NEW CUSTOMS HOUSE, SHOORJI VALLABHDAS ROAD, BALLARD ESTATE, MUMBAI – 400001. Tel. No. 22757497.
F. No. S/1-23/2016-17 EDI, NCH
Date – 27.06.2017
Public Notice: 72/2017
Subject: Implementation of GST in Customs – Changes in BE/SB Declaration – 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 and subsequent PN. 71/2017 dated 23.06.2017 of Zone-I Customs Mumb
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oms Tariff Act.
(ii) The IGST rates are notified by Central Government through a Notification under Section 5 of IGST Act, 2017. The percentage rate of integrated tax in respect of goods specified are provided 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 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)
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*
Duty Flag as G; Addl Duty Flag as I; Ex.Flag as C
Levy & Exemption of GST Cess (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 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 apporti
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Bill of Entry needs to be submitted to avail the input tax credit of Additional Duty of Customs. Similarly, 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 h
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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 unutilized 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 ICDs, 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 o
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neric
No
PAN
PAN
Indivi./Generic
No
TAN
TAN
Indivi./Generic
No
The exporters need to provide additional identifier like GSTIN or other additional identifiers. The IGST payment status would be “NA” since IGST has not been paid.
12. IGST Payment Details
Following fields 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 from the one indicated on the export invoice, these particulars have to be individually declared for every item. Here, Taxable Value is
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00/2000) X 24,000 = Rs. 22,800
The taxable value shall be matched with the export invoice particulars declared in the GST return, i.e. the invoice on which IGST was paid. No other invoice like Commercial Invoice etc. should be used for computation of Taxable Value and IGST paid. The refund of IGST shall then be limited to the IGST paid on the goods actually exported, i.e. Rs. 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 INTEGRA
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input tax credit of the Central Goods and Services Tax or of the Integrated Goods and Services Tax has been availed for any of the inputs or input services used in the manufacture of the export goods.”
DBK002 – “I declare that no refund of Integrated Goods and Services Tax paid on export goods 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:
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y in the implementation of the above changes may be brought to the notice of the undersigned.
20. This, issues with the approval of the Chief Commissioner of Customs, Mumbai Zone-1 New Customs House, Mumbai. Action to be taken in terms of decision taken in this public notice should be considered as standing order for the purpose of officers and staff.
Sd/-
(Ramesh Chander)
Commissioner of Customs,
Export-I, Mumbai Customs,
Zone-1
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Document 1
Annexure -|
End Use Code
DCA100
DCH100
DCH300
DCH400
DCH800
DCX200
DCX900
End Use Description
For Veterinary Medical Use as a Non-Food Product under Controlled
Distribution (Trading)
For Human Medical Use as a Non-Food Product under Controlled
Distribution (Trading)
For Human 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/Ac
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Assembly or processing
Manufacture/Actual use)
(For
GNX300
Generic -For use as Fertilizers or soil promoters
GNX600
Generic -For Repair or Refurbishing as defective or second hand goods
Generic-For Recycling or Recovery
GNX650
GNX680
Generic -For Disposal as waste
GNX700
Generic -For Public Display or Exhibition
Document 2
GNX810
GNX815
GNX915
LVA100
LVA200
LVA300
LVA400
LVA500
LVA710
LVA760
Generic -For Research & Development (note: other than Biomedical
Research)
Generic -For Medical Or Biomedical Research
Generic -For display as a Trophy (hunting or other trophy)
Live Animal -For Breeding in Captivity or Artificial Propagation
Live Animal -For Grow-Out or Increase
Live Animal -For re-introduction into the wild
Live Animal -For Immediate Slaughter
Live Animal -For use as Fertilizers or soil promoters
Live Animal -For display in Zoo
live Animal -For Circus or Travelling Exhibition or games or show
Live Animal -For Research Purposes
LVA800
LVA900
Li
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