Imports under GST
By: – Kishan Barai
Customs – Import – Export – SEZ
Dated:- 24-7-2017<\/p>\n
In the GST regime, IGST and GST Compensation cess will be levied on imports by virtue of sub-sections (7) & (9) of Section 3 of the Customs Tariff Act, 1975. Barring a few commodities such as pan masala, certain petroleum products which attractlevy of CVD, majority of imports would attract levy of IGST. Further, a few products such as aerated waters, tobacco products, motor vehicles etc, would also attract levy of GST Compensation Cess, over and above IGST. IGST andGST Compensation cess, wherever applicable, would be levied on cargo that would arrive on or after 1st July, 2017. It may also be noted that IGST would also be levied on cargo which has arrived prior to 1st July but a bill of entry is filed on or after 1st July 2017.Similarly ex-bond bill of entry filed on or after 1st July 2017 would attract IGST and GST Compensation cess, as applicable.In the case where cargo arrival is a<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n t, 2017. The rates applicable to goods of Chapter 98 are as under: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n or higher education cess as well as anti-dumping and safeguard duties.The inclusion of anti-dumping duties and safeguard duty = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ies will be exempted on imports made under export promotion schemes namely EPCG, DEEC (Advance License) and DFIA. IGST and Compensation Cess will have to be paid on such imports. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n r heading 9801 and duty shall be levied @ 18%. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n , however the credit of basic customs duty (BCD) would not be available. In order to avail ITC of IGST and GST Compensation Cess, an importer has to mandatorily declare GST Registration number (GSTIN) in the Bill of Entry. Provisional IDs issued by GSTN can be declared during the transition period. However, importers are advised to complete their registration process for GSTIN as ITC of IGST would be available based on GSTIN declared in the Bill of Entry. Input tax credit shall be availed by a registered person only if all the applicable particulars as prescribed in the Invoice Rules are contained in the said document, and the relevant information, as contained in the said document, is furnished in FORM GSTR-2 by such person. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Kishan, = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n re no SION is fixed). = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n or it has to receive in the factory only. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n of ITC available = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n s received from composition taxable person and other exempt\/Nil rated\/Non GST = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n of rule = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n C. UQC: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 3. Details relating to import of Goods\/Capital Goods from outside India as well = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Imports under GSTBy: – Kishan BaraiCustoms – Import – Export – SEZDated:- 24-7-2017 In the GST regime, IGST and GST Compensation cess will be levied on imports by virtue of sub-sections (7) & (9) of Section 3 of the Customs Tariff Act, 1975. Barring a few commodities such as pan masala, certain petroleum products which … Continue reading “Imports under GST”<\/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-6388","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/6388","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=6388"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/6388\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\n* 9801- Project Imports- 18%
\n* 9802- Laboratory Chemicals- 18%
\n* 9803- Passenger baggage – Nil Rate
\n* 9804- Specified Drugs and medicines for personal use- 5%
\n* 9804- Other drugs and medicines for personal use- 12%
\n* 9804- All other dutiable goods for personal use- 28%
\nLikewise, different rates of tax have been notified for goods attracting Compensation Cess which is leviable on 55 item descriptions (of supply). These rates are mostly ad valorem. But some also attract either specific rates (e.g. coal) or mixed rates (ad valorem + specific) as for cigarettes. The coverage of the goods under GST compensation cess isavailable on CBEC website along with their HSN codes and applicable cess rates.The IGST Rates of Goods, Chapter wise IGST rate, GST Compensation Cess rates, IGST Exemption\/Concession are available on CBEC website for trade and departmental officers as well.
\nValuation and method of calculation: IGST is l<\/p>\n
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\nin the value for levy of IGST and Compensation Cess is an important change. These were not hitherto included in the value for the levy of additional duty of customs (CVD) or Special Additional Duty (SAD).The IGST paid shall not be added to the value for the purpose of calculating Compensation Cess.
\nAlthough BCD, Education Cesses and IGST would be applicable in majority of cases, however, for some products CVD, SAD or GST Compensation cess may also be applicable. For different scenarios the 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 paid on import of goods. Therefore, GSTIN would be the key identifier. DGFT in its Trade Notice No. 09 dated 12.06.2017 has stated that PAN would be the Import Export code <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nThe EXIM scrips under the export incentive schemes of chapter 3 of FTP (for example MEIS and SEIS) can be utilised only for payment of Customs duties or additional duties of Customs, on items not covered by GST, at the time of import. The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess. Similarly, scrips cannot be used for payment of CGST, SGST or IGST for domestic procurements.
\nVI. EOUs and SEZ:
\nEOUs\/EHTPs\/STPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable under Section 3 (1) and 3(5) of the Customs Tariff Act. GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input tax credit (ITC). This ITC can be utilized for payment of GST taxes payabl<\/p>\n
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\nIX. Baggage:
\nFull exemption from IGST has been provided on passenger baggage. However, basic customs duty shall be leviable at the rate of 35% and education cess as applicable on the value which is in excess of the duty free allowances provided under the Baggage Rules, 2016.
\nX. Refunds of SAD paid on imports:
\nThe need for SAD refunds arose mainly on account of the fact that traders or dealers of imported goods were unable to take credit of this duty (which was a Central tax) while discharging their VAT or Sales tax liability (which was State levy) on subsequent sale of the goods. Unless corrected through a mechanism such as refund (of one of the taxes) this would have resulted in “double” payment of tax.
\nWith the introduction of GST on 01.07.2017, credit of “eligible duties” in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock, is permissible to registered persons not liable to be re<\/p>\n
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\nCustoms EDI system would be interconnected with GSTN for validation of ITC. Further, Bill of Entry data in non-EDI locations would be digitized and used for validation of input tax credit provided by GSTN.
\n Reply By KASTURI SETHI as =
\nDear Sir,
\n By entering in<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nVery delighted with this article. Very useful. Thanks for all your efforts!!.
\nI have a query. EOU plans to import capital goods (machinery) for manufacture. What is the import duties applicable? If IGST is applicable, how we can get refund? There is no DTA sales. In pre-GST scenerio, all import duties on capital goods are exempted to the unit.
\nPlease clarify.
\nThanks and regards,
\nCA Sekhar PN
\n Dated: 25-7-2017
\n Reply By JAIPRAKASH RUIA as =
\nMay be import under notification 52\/2003-Custom and IGST refund through export under rebate in place of BOND\/LUT.
\n Dated: 25-7-2017
\n Reply By Kishan Barai as =
\nAn EOU will have to pay the applicable GST on the import or domestic sourcing of inputs (goods or services).
\nThe EOUs will continue to get exemption from payment of the basic Customs Duty, however they will have to pay IGST on imports.
\nOn the IGST paid on import of inputs, ITC would be available which can be used for payment of GST payable on the goods cleared in the DTA. Re<\/p>\n
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\n* Refund of any benefits taken on procurement of inputs from DTA under Chapter 7 of FTP and used in the manufacture of products under DTA sale.
\nSupply of goods from one EOU to another EOU (inter-unit transfer) will require payment of applicable GST. The BCD exemption availed on inputs from the supplier EOU, used in such transferred goods would have to be reversed by the recipient EOU at the time clearance of such goods in DTA. Same provisions apply on sending of Goods for Job work.
\nFor GST exempt Goods like Petroleum products, the existing provisions provided under notification no. 52\/2003-Cus, notification no. 22\/2003-CE and Notification no. 23\/2003-CE will continue to apply for import, domestic procurement and domestic clearance.
\n Dated: 25-7-2017
\n Reply By JAIPRAKASH RUIA as =
\nDear Sir,
\nWhether 52\/2003-Custom is not available to EOU for duty free Import of input and capital goods subject to condition of said notification.
\n Dated: 25-7-2017
\n Reply B<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nPlease share your view.
\n Dated: 25-7-2017
\n Reply By Kishan Barai as =
\nKindly connect with me via Whatsapp (+91) 8128111191 I will try my best to help you in Export Import Business.
\n Dated: 25-7-2017
\n Reply By Ganeshan Kalyani as =
\nNice article. Thanks
\n Dated: 26-7-2017
\n Reply By raghunandhaanan r vi as =
\nSir,
\nOne of our clients in Delhi had imported materials from overseas.
\nThe GSTIN erroneously declared in the bill of entry was of Chennai unit instead of Delhi [Same IEC]
\nThe consignee address in documents and bill of entry is of Delhi and duty paid by Delhi
\nGoods cleared from port on payment of applicable customs duties including IGST
\nMy question is :
\n Whether we can amend the bill of entry now to change the IGSTIN of Delhiin place of Chennai already declared.
\n If not, can Chennai office claim the ITC and transfer it to Delhi account through IBT?
\nRequest valuable advice from experts at the earliest. …… Thanks
\n Dated: 27-7-2017\n<\/p>\n
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\nsupply input or
\n(Name
\ner
\nO ee
\ned tax
\nal
\ne\/
\nof
\nState\/U
\ninput Integrat Centr
\nservice\/ed Tax
\nCapital
\nStat Ces
\nal
\ne\/ S
\nTax
\nUT
\nTax
\nUT
\nT)
\ngoods
\nTax
\n(incl.
\nTax
\nplant and
\nmachiner
\ny)\/
\nIneligible
\nfor ITC
\n1
\n23
\n6
\n7
\n8
\n9
\n10
\n11
\n12
\n13
\n14
\n15 16
\n4A. Inward supplies received from a registered supplier (attracting reverse charge)
\n89
\n4B. Inward supplies received from an unregistered supplier
\n4C. Import of service
\n5. Inputs\/Capital goods received from Overseas or from SEZ units on a Bill of
\nEntry
\nGSTIN Details of bill of Rate Taxable
\nAmount
\nof
\nsupplier No.
\nentry
\nDate Value
\nvalue
\nWhether
\ninput \/
\nAmount of ITC
\navailable
\nIntegrated Cess
\nTax
\nCapital
\nIntegrated Cess
\ngoods(incl.
\nTax
\nplant and
\nmachinery)\/
\nIneligible
\nfor ITC
\n1
\n2
\n3
\n4
\n5
\n7
\n8
\n9
\n10
\n11
\n5A. Imports
\n5B. Received from SEZ
\nPort code +No of BE=13 digits
\nAssessable
\nValue
\n6. Amendments to details of inward supplies furnished in returns for earlier tax periods i<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nsupplies received
\nDescription
\n7A. Inter-State
\nsupplies
\n7B. Intra-state
\nsupplies
\n8. ISD credit received
\nComposition taxable
\nperson
\n2
\nValue of supplies received from
\nExempt supply Nil Rated supply
\nNon GST
\nsupply
\n3
\n4
\n5
\nGSTIN of ISD
\nISD
\nDocument
\nDetails
\nISD Credit received
\nAmount of eligible ITC
\nNo.
\nDate Integrated Central State\/ Cess Integrated Central State\/UT Cess
\n8A. ISD Invoice
\n8B. ISD Credit Note
\nTax
\nTax UT
\nTax
\nTax
\nTax
\nTax
\n2
\n3
\n4
\n5
\n6
\n7
\n8
\n9
\n10
\n11
\n9. TDS and TCS Credit received
\nGSTIN of
\nDeductor\/
\nGross Sales
\nValue Return
\nNet Value
\nAmount
\nGSTIN of e-
\nIntegrated
\nTax
\nCentral
\nTax
\nState Tax \/UT
\nTax
\nCommerce
\nOperator
\n1
\n2
\n3
\n4
\n5
\n6
\n7
\n9A.
\nTDS
\n9B.
\nTCS
\n91
\n10. Consolidated Statement of Advances paid\/Advance adjusted on account of receipt of
\nsupply
\nRate
\nGross
\nAdvance
\nPlace of
\nsupply
\nAmount
\nPaid
\n1
\n2
\n(Name of Integrated Central
\nState\/UT)
\n3
\nS<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n37(2)
\nTo be added
\n(b) Amount in terms of rule
\n39(1)(j)(ii)
\nTo be added
\n(c) Amount in terms of rule 42
\n(1) (m)
\nTo be added
\n(d) Amount in terms of rule
\nTo be added
\n43(1) (h)
\n(e) Amount in terms of rule 42
\n(2)(a)
\nTo be added
\n(f) Amount in terms of rule
\n42(2)(b)
\n(g) On account of amount paid
\nsubsequent to reversal of ITC
\n92
\n22
\nTo be reduced
\nTo be reduced
\n(h) Any other liability (Specify)
\nB. Amendment of information furnished in Table No 11 at S. No A in an earlier return
\nAmendment is in respect of
\ninformation furnished in the
\nMonth
\nSpecify the information you wish
\nto amend (Drop down)
\n12. Addition and reduction of amount in output tax for mismatch and other reasons
\nDescription
\nAdd to or
\nreduce
\nAmount
\nfrom
\noutput Integrated Central State
\nCESS
\nliability
\nTax
\nTax
\n\/UT
\nTax
\n1
\n2
\n3
\n4
\n5
\n6
\n(a)
\nITC claimed on mismatched\/duplication of
\ninvoices\/debit notes
\nAdd
\n(b)
\nTax liability on mismatched credit notes
\nAdd
\nReclaim on account of rectific<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nUnit Quantity Code
\nd. HSN:
\ne.
\nPOS:
\nf.
\nB to B:
\ng.
\nB to C:
\nPlace of Supply (Respective State)
\nFrom one registered person to another registered person
\nFrom registered person to unregistered person
\n2. Table 3 & 4 to capture information of:
\n(i)
\n(ii)
\n(iii)
\n(iv)
\n(v)
\n(vi)
\nInvoice-level inward supply information, rate-wise, pertaining to the tax period
\nreported by supplier in GSTR-1 to be made available in GSTR-2 based on auto-
\npopulated details received in GSTR-2A;
\nTable 3 to capture inward supplies other than those attracting reverse
\ncharge and Table 4 to capture inward supplies attracting reverse charge;
\nThe recipient taxpayer has the following option to act on the auto
\npopulated information:
\na. Accept,
\nb. Reject,
\nc. Modify (if information provided by supplier is incorrect), or
\nd. Keep the transaction pending for action (if goods or services have
\nnot been received)
\nAfter taking the action, recipient taxpayer will have to mention whether
\nhe is eligible <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nas supplied by an SEZ Unit to be reported rate-wise by recipient tax payer in
\nTable 5.
\n4. Recipient to provide for Bill of Entry information including six digits port
\ncode and seven digits bill of entry number.
\n5. Taxable Value in Table 5 means assessable value for customs purposes on
\nwhich IGST is computed (IGST is levied on value plus specified customs
\nduties). In case of imports, the GSTIN would be of recipient tax payer.
\n6. Table 6 to capture amendment of information, rate-wise, provided in earlier tax
\nperiods in Table 3, 4 and 5 as well as original\/ amended information of debit
\nor credit note. GSTIN not to be provided in case of export transactions.
\n7. Table 7 captures information on a gross value level.
\n8. An option similar to Table 3 is not available in case of Table 8 and the credit
\nas distributed by ISD (whether eligible or ineligible) will be made available to
\nthe recipient unit and <\/p>\n
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