C.B.E. & C. Advisory on Customs related matters on introduction of Goods and Services Tax regime
F. No. 450\/106\/2017-Cus.IV Dated:- 20-6-2017 Clarifications \/ Instructions \/ Orders
GST
Government of India
\nMinistry of Finance
\n(Department of Revenue)
\nCentral Board of Excise & Customs
\nNew Delhi, dated 20-6-2017
\nWith the GST set to be rolled out on 1st July, 2017, the final phase of preparation for its implementation is in full swing. Customs too has a major stake in the early implementation of GST as IGST would begin to be levied on the imports from the very first day, the credit of which shall be available to the importers. Similarly, the refund on export of goods is contingent upon filing of (a) shipping bill accompanied by the GST invoice and (b) export general manifest. You would thus appreciate the immediate need for sensitising our officers, trade and partner stakeholders to the changes imminent on the Customs side.
\nChanges in Customs law and procedure are accompanied<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n meetings with Trade Associations, Customs Brokers, Chambers of Commerce and Industry and other EXIM trade bodies to disseminate the information about changes and ensure movement of goods across borders with disruption. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n y article which is imported into India shall, in addition, be liable to integrated tax at such rate, not exceeding forty per cent. as is leviable under section 5 of the Integrated Goods and Services Tax Act, 2017 on a like article on its supply in India, on the value of the imported article as determined under sub-section (8). = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n or the tariff value of such article fixed under sub-section (2) of that section, as the case may be; and = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ters to declare their GSTIN, i.e., the GST registration number on the Bill of Entry if they wish to claim the credit of the IGST paid on the imported goods. Importers not registered with GSTN will be required to declare their PAN along with their state code as per the Census of India. This is required for transfer of the IGST paid by the non GST importers to the account of the “consumption” state. Diplomatic organizations or UN bodies can quote their UIN issued by GSTN on the Bill of Entry. In this regard, DGFT has also issued Trade Notice No. 09\/2018, dated 12-6-2017 wherein it has been indicated that with regard to importer\/exporter registered with GSTN, importer\/exporter would need to declare only GSTIN at the time of import and export of goods and the importers who are not registered under GST would use their PAN for imports. Changes have been made in the BE forms to capture details like GSTIN, PAN, State code etc. of the importer. Similar changes will also be incorporated for impo<\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n f correct rate. The IGST and Compensation Cess notifications directories are being developed in the EDI System to automatically calculate the levy on imported goods. The total IGST and Compensation Cess paid will be published on every Bill of Entry which can be quoted by the importer to claim the corresponding credit in the GST return. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n to facilitate proof of export, Shipping Bill forms have also been modified to capture details such as GSTIN of the exporter, GST export invoice number etc. The exporter shall have to declare item-wise taxable value and corresponding IGST on the Shipping Bill. All these details will be used to validate the declarations made by the exporter on the GST return to confirm export. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" C.B.E. & C. Advisory on Customs related matters on introduction of Goods and Services Tax regimeF. No. 450\/106\/2017-Cus.IV Dated:- 20-6-2017 Clarifications \/ Instructions \/ OrdersGSTGovernment of India Ministry of Finance (Department of Revenue) Central Board of Excise & Customs New Delhi, dated 20-6-2017 With the GST set to be rolled out on 1st July, 2017, … Continue reading “C.B.E. & C. Advisory on Customs related matters on introduction of Goods and Services Tax regime”<\/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-7169","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7169","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=7169"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7169\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7169"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7169"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nAdvisory on Customs related matters on introduction of Goods and Services Tax regime
\nLevy of Duties
\n1. Sub-section (1) of section 5 of the Integrated Goods and Services Act, 2017 states that
\n“Subject to the provisions of sub-section (2), there shall be levied a tax called the integrated goods and services tax on all inter-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the Central Goods and Services Tax Act and at such rates, not exceeding forty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person :
\nProvided that the integrated tax on g<\/p>\n
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\n(8) For the purposes of calculating the integrated tax under sub-section (7) on any imported article where such tax is leviable at any percentage of its value, the value of the imported article shall, notwithstanding anything contained in section 14 of the Customs Act, 1962, be the aggregate of –
\n (a) 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
\n (b) 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 f<\/p>\n
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\n (b) 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).
\n3. It is requested that the officers and the trade are kept well informed about the above new levies and the levies that are being subsumed, replaced or repealed. In this context, it is further requested that the fine-print of Taxation Laws (Amendment) Act, 2017 is read by field officers in detail. Customs ICES 1.5 application is also being modified to ensure that the new levies are applied and collected on all the imports from July 1st.
\nChanges in Bill of Entry and Shipping Bill Forms :
\n4. Since new provisions for levy of IGST a<\/p>\n
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\nEDI Shipping Bill :
\n7. The Integrated Goods and Services Tax Act, 2017, under section 16 provides that export of goods shall be zero rated supply and credit of input tax may be availed for making zero rated supplies, notwithstanding that such supply may be an exempt supply. The section further lays down that a registered person making zero rated supply shall be eligible to claim refund under either of the following options, namely :
\n(a) 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 unutili<\/p>\n
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\n10. For the time being, importers\/exporters are advised to declare GSTIN, PAN and IEC while filing document for import\/export of goods. However, over a period of time, declaration with regard to only GSTIN and PAN shall be required in the Shipping Bill.
\nManual Bill of Entry and Shipping Bill :
\n11. Since all the validation related to IGST refund or flow of IGST credit shall happen electronically between Customs EDI and GSTN, it is imperative hereon that the required data is captured electronically without fail for all the imports and exports whether or not through EDI locations. In case of EDI location<\/p>\n
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