Guidance Note for Importer and Exporter on GST roll out
PUBLIC NOTICE. 25\/2017 Dated:- 30-6-2017 Trade Notice
Customs
GOVERNMENT OF INDIA
\nMINISTRY OF FINANCE : DEPARTMENT OF REVENUE
\nOFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS
\nCUSTOM HOUSE, PORT AREA, VISAKHAPATNAM – 530 035
\nF. No. S2\/08\/2017-ED1
\nDate: 30\/06\/2017
\nPUBLIC NOTICE. 25\/2017
\nSubject: – Guidance Note for Importer and Exporter on GST roll out-Reg.
\nAttention of all Importers, Customs Brokers, Members of the Trade and others is invited towards guidelines issued by CBEC for Importer and Exporter on GST roll out. Those guidelines are enclosed herewith and all concerned are directed to go through the same.
\nDifficulties, if any may be brought to the notice of the undersigned.
\nDr.DK SRINIVAS
\nCOMMISSIONER OF CUSTOMS.
\n=============
\nDocument 1
\nI. Introduction:
\nIndian Customs gears up for GST roll-out
\nGuidance Note for Importers and Exporters
\nThe purpose of this guidance note is to bring clarity about the impac<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ts by virtue of sub- = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n gage – Nil Rate = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n y = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n and DFIA. IGST and = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n om IGST has been provided on passenger baggage. However, basic customs = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ms duty (BCD) = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n of three months is also being provided from date of implementation of GST = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ntral = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n filed only after the export manifest or an export report, as the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n epartment. Suitable circular in this regard would be issued. Until then the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n – = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Guidance Note for Importer and Exporter on GST roll outPUBLIC NOTICE. 25\/2017 Dated:- 30-6-2017 Trade NoticeCustomsGOVERNMENT 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: 30\/06\/2017 PUBLIC NOTICE. 25\/2017 Subject: – Guidance Note for Importer and … Continue reading “Guidance Note for Importer and Exporter on GST roll out”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-17146","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/17146","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17146"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/17146\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17146"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17146"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17146"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\nsections (7)&(9)
\nof Section 3 of the Customs Tariff Act, 1975. Barring a few commodities such
\nas pan masala
\n, certain petroleum products which attractlevy of CVD, majority of importswould
\nattract levy of
\nIGST. Further, a few products such as acrated waters, tobacco products, motor
\nvehicles etc, would
\nalso attract levy of GST Compensation Cess, over and above IGST. IGST
\nandGST
\nCompensation cess, wherever applicable, would be levied on cargo that would arrive on
\nor after 1st July,
\n2017. It may also be noted that IGST would also be levied on cargo which has
\narrived prior to
\n1″ July but a bill of entry is filed on or after 1 July 2017.Similarly ex-bond bill
\nof entry filed
\non or after 1 July 2017 would attract IGSTand GST Compensation cess, as
\napplicable. In the case
\nwhere cargo arrival is after 1″ July and an advance bill of entry was filed.
\nbefore 1
\nJuly along with the payment of duty, the bill of entry may be recalled and reassessed by
\nthe proper<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n9804- Specified Drugs and medicines for personal use- 5%
\n9804- Other drugs and medicines for personal use- 12%
\n9804- All other dutiable goods for personal use- 28%
\nLikewise, different rates of tax have been notified for goods attracting Compensation Cess which
\nis leviable on 55 item
\ndescriptions (of supply). These rates are mostly ad valorem. But some also
\nattract either specific rates (
\ne.g. coal) or mixed rates (ad valorem + specific) as for cigarettes. The
\ncoverage of the goods
\nunder GST compensation cess isavailable on CBEC website along with
\ntheir HSN codes and
\napplicable cess rates.The IGST Rates of Goods, Chapter wise IGST rate,
\nGST Compensation Cess
\nrates, IGST Exemption\/Concession are available on CBEC website for
\ntrade and departmental
\nofficers as well.
\nValuation and method of calculation: IGST is leviable on the value of imported goods and
\nfor calculating integrated tax on any
\nimported article, the value of such imported goods
\nwould be the<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nDocument 3
\nin the value for levy of IGST and Compensation Cess is an important change. These were n
\nhitherto included in the value for the
\nlevy of additional duty of customs (CVD) or Speci
\nAdditional Duty (SAD). The
\nIGST paid shall not be added to the value for the purpose
\ncalculating Compensation Cess.
\nAlthough BCD, Education Cesses and IGST would be applicable in majority of cases, howeve
\nfor some products CVD, SAD or GST Compensation cess may also be applicable. For differen
\nscenarios
\nthe duty calculation process has been illustrated in Annexure-I of this document.
\nIV. Changes in import procedures:
\nImporter Exporter Code (IEC): In GST regime, GSTIN would be used for credit flow of IGST
\npaid on import of goods. Therefore, GSTIN would be the key identifier. DGFT in its Trade
\nNotice
\nNo. 09 dated 12.06.2017 has statedthat PANwould be the Import Export code (IEC)
\nHowever, while PAN is identifier at the entity level, GSTIN would be used as identifier at the
\ntransaction l<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nCompensation Cess will have to be paid on such imports.
\nThe EXIMscrips under the export incentive schemes of chapter 3 of FTP (for example MEIS and
\nSEIS)
\ncan be utilised only for payment of Customs dutiesor additional duties of Customs, on
\nitems not
\ncovered by GST,at the time of import. The scrips cannot be utilized for payment
\nofIntegrated
\nTax and Compensation Cess. Similarly, scripscannot be used for payment of CGST,
\nSGST or
\nIGST for domestic procurements.
\nDocument 4
\nVI. EOUS and SEZ:
\nEOUS\/EHTPS\/STPs will be allowed to import goods without payment of basic customs du
\n(BCD) as well additional
\nduties leviable under Section 3 (1) and 3(5) of the Customs Tariff A
\nGST would be
\nleviable on the import of input goods or services or both used in the manufactu
\nby EOUS which can
\nbe taken as input tax credit (ITC). This ITC can be utilized for payment
\nGST taxes payable on
\nthe goods cleared in the DTA or refund of unutilized ITC can be claime
\nunder Section\n<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nduty shall be leviable
\nat the rate of 35% and education cess as applicable on the value which is in
\nexcess of the
\nduty free allowancesprovided under the Baggage Rules, 2016.
\nX.
\nRefunds of SAD paid on imports:
\nThe need for SAD refunds arose mainly on account of the fact that traders or dealers of imported
\ngoods were unable
\nto take credit of this duty (which was a Central tax) while discharging their
\nVAT or Sales tax
\nliability (which was State levy) on subsequent sale of the goods. Unless
\ncorrected through a
\nmechanism such as refund (of one of the taxes) this would have resulted in
\n“double”
\npayment of tax.
\nWith the introduction of GST on 01.07.2017, credit of “eligible duties” in respect of inputs held
\nin stock and inputs
\ncontained in semi-finished or finished goods held in stock, is permissible to
\nDocument 5
\nregistered persons not liable to be registered under the existing law (for instance, VAT dea<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nwould not be available. In order to avail ITC of IGST and GST
\nCompensation Cess
\n, an importer has to mandatorily declare GST Registration number (GSTIN)
\nin the Bill of Entry.
\nProvisional IDs issued by GSTN can be declared during the transition period.
\nHowever, importers
\nare advised to complete their registration process for GSTIN as ITC of IGST
\nwould be available based
\non GSTIN declared in the Bill of Entry. Input tax credit shall be availed
\nby a registered person
\nonly if all the applicable particulars as prescribed in the Invoice Rules are
\ncontained in the said
\ndocument, and the relevant information, as contained in the said document,
\nis furnished in FORM
\nGSTR-2 by such person.
\nCustoms EDI system would be interconnected with GSTN for validation of ITC. Further, Bill of
\nEntry data in non-EDI
\nlocations would be digitized and used for validation of input tax credit
\nprovided by GSTN.
\nXII. Drawback:
\nExports under GST
\nNo amendments have been made to the d<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\ni.e. 1.7.2017.
\nDuring this period, existing duty drawback scheme under Section 75 shall continue.
\nFor exports during
\nthis period, exporters can claim higher rate of duty drawback (composite AIR)
\nsubject to
\nconditions that no input tax credit of CGST\/IGST is claimed, no refund of IGST paid
\non export goods
\nis claimed and no CENVAT credit is carried forward. A declaration from
\nexporter and certificate from jurisdictional GST officer in this regard has been prescribed in the
\nnotification related
\nto AIRS. This will prevent double availement of neutralisation of input taxes.
\nSimilarly, the
\nexporter can claim brand rate for Customs, Central Excise duties and Service Tax
\nduring this
\nperiod.
\nExporters also have the option of claiming only the Customs portion of AIR and claim
\nrefund\/ITC under GST
\nlaws.
\nAll Industry Rates for the transition period shall be notified before 1.7.2017. The AIR for post
\ntran<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nExcise\/Service Tax
\npaid and CGST\/IGST paid inputs and inputs services or only CGST\/IGST
\nDocument 7
\npaid inputs and inputs services. In such situation, an exporter opting to claim composite rate
\nduty drawback during
\ntransition period has to give specified declaration and produce certificat
\nas stated above so that he does
\nnot claim double benefit. Exporter will have to reverse the ITC
\nany availed and also ensure
\nthat he does not claim refund of ITC\/IGST. Requisite certificate fro
\nGST officer shall also be
\nrequired to this effect. As mentioned earlier, exporters will also hav
\noption of claiming credit\/refund
\nof CGST\/IGST and claim Customs rate drawback.
\nXIII.
\nRefund of IGST paid on exports and Export under Bond scheme:
\nUnder GST regime exports would be considered as zero-rated supply. Any person making zerc
\nrated supply (ie. any exporter) shall
\nbe eligible to claim refund under either of the following
\noptions, namely:-
\n(a) he may supply goods or services or both u<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\ncase may be, is delivered under
\nsection 41 of the Customs Act, 1962 in respect of such goods.
\nFor the option (b),the shipping bill filed by an exporter shall be deemed to be an application for
\nrefund of integrated tax paid
\non the goods exported out of India and such application shall be
\ndeemed to have been filed only
\nwhen the person in charge of the conveyance carrying the export
\ngoods duly files an export manifest
\nor an export report covering the number and the date of
\nshipping bills or bills of export
\nand the applicant has furnished a valid return.
\nDocument 8
\nFor both option (a) and (b) exporters have to provide details of GST invoice in the Shipping bill.
\nARE-1 which is being
\nsubmitted presently shall be dispensed with except in respect of
\ncommodities to which provisions of
\nCentral Excise Act would continue to be applicable.
\nXIV. Change in export Procedures:
\nElectronic as well as manual Shipping Bill <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nextant instructions on the
\nissue may be followed.
\nNote: The above guidance note should not be used in anyquasi-judicial or judicial proceedings,
\nwhere only the relevant legal
\ntexts need to be referred to.
\nDocument 9
\nANNEXURE-I
\nCase 1.-Where product attracts IGST but not CVD
\nSuppose Assessable Value (A.V.) including landing charges Rs. 100\/-
\n(1)
\nBCD-10%
\n(2)
\nIGST-12%
\n(3)
\nEducation cess – 2%
\n(4)
\nHigher education cess-1%
\nIn view of the above parameters, the calculation of duty would be as below:
\n(a)
\nBCD Rs. 10 [10% of A.V.]
\n(b)
\nEducation cess- Rs. 0.2 [2% of (a)]
\n(c)
\nHigher education cess- Rs. 0.1 [1% of (a)]
\n(d)
\nIGST-Rs. 13.236 (A.V.+(a)+(b)+(c)]x12%
\nCase 2. Where product does not attract CVD but attract IGST as well as compensation cess
\nSuppose Assessable Value (A.V.) including landing charges Rs. 100\/-
\n(1)
\nBCD-10%
\n(2)
\nIGST-12%
\n(3)
\nEducation cess – 2%
\n(4)
\nHigher education cess -1<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n(1) BCD-10%
\n(2) CVD-12%
\n(3) IGST-28%
\n(4) Education cess – 2%
\n(5)
\nHigher education cess -1%
\n(6) Compensation cess-10%
\nDocument 11
\nIn view of the above parameters, the calculation of duty would be as below:
\n(a)
\nBCD Rs. 10 [10% of A.V.]
\n(b)
\nCVD Rs 13.2 [12% of (A.V.+ BCD)
\n(c)
\nEducation cess- Rs. 0.464 [2% of (BCD+CVD)]
\n(d)
\nHigher education cess- Rs. 0.232 [1% of (BCD+CVD)]
\n(e)
\nIGST Rs. 34.69 [A.V.+(a)+(b)+(c)+(d)]x 28%
\n(f)
\nCompensation cess – Rs. 12.389 [A.V.+(a)+(b)+(c)+(d)]x 10%
\nNote: In cases where imported goods are liable to Anti-Dumping Duty or Safeguard Duty,
\ncalculation of Anti-Dumping Duty or Safeguard duty would be as per the respective notification
\nissued for levy of such duty. It is also clarified that value for calculation of IGST as well as
\nCompensation Cess shall also include Anti-Dumping Duty amount and Safeguard duty amount.
\nCBEC WEBSITE
\nInformation guide on GST
\nwww.cbec.gov.in
\nGSTN WEBSITE – www.gstn.org
\nGST COUNCIL WEBSITE – www.gstindia.co<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n