All about Imports under GST
By: – CA.VINOD CHAURASIA
Goods and Services Tax – GST
Dated:- 23-8-2017<\/p>\n
I. Introduction
\nImports
\nUnder GST regime, Art. 269A of Constitution mandates the supply of goods or services or both in the course of import in to the territory of India shall be deemed to be the supply of goods or services or both in the course of inter-state trade or commerce for levy of IGST.
\nIGST on import of goods would be levied under Customs Act, 1962 read with Customs Tariff Act, 1975.
\nIGST on import of services would be leviable under IGST Act and importers will have to pay tax on RCM basis.
\nBut IGST on import of OIDAR services by unregistered, non taxable recipients shall be paid on Forward charge basis by the supplier located outside India either by getting registered himself under the Act or will have to appoint a person in India for payment of taxes.
\nSupply of goods or services to SEZ unit or SEZ developershall be treated as interstate supply and shall<\/p>\n
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For full text:-Visit the Source <\/a><\/p>\n
\nFurther, a few products such as aerated waters, tobacco products, motor vehicles etc, would also attract levy of GST Compensation Cess, over and above IGST.
\nIGST and GST Compensation cess, wherever applicable, would be levied on cargo that would arrive on or after 1st July, 2017.
\nIGST 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.
\nEx-bond bill of entry filed on or after 1st July 2017 would also attract IGST and GST Compensation cess, as applicable.
\nIn the case where cargo arrival is after 1st July and an advance bill of entry was filed before 1st July along with the payment of duty, the bill of entry may be recalled and reassessed by the proper officer for levy of IGST and GST compensation Cess, as applicable.
\nIII. Duty Calculation
\nIGST rates have been notified through notification 01\/2017-Integrated Tax (Rate), dated 28-06-2017.
\nIGST rate on any product can be ascertained by s<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nThe IGST Rates of Goods, Chapter wise IGST rate, GST Compensation Cess rates, IGST Exemption\/Concession are available on CBEC website.
\nValuation and method of calculation
\nIGST is calculated on the value of:
\n1. imported article determined under sub-section (1) of section 14 of the Customs Act, 1962 or the tariff value fixed under sub-section (2) of the that section; and
\n2. 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, or as duty of Customs but does not include to the tax referred in the sub-section 7 (IGST) and sub-section 9 (Compensation Cess).
\nGST Compensation cess is calculated on the value of:
\n1. the imported article <\/p>\n
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\n(1) BCD- 10%
\n(2) IGST-12%
\n(3) Education cess – 2%
\n(4) Higher education cess -1%
\nIn view of the above parameters, the calculation of duty would be as below:
\n(a) BCD = ₹ 10 [10% of A.V.]
\n(b) Education cess- ₹ 0.2 [2% of (a)]
\n(c) Higher education cess- ₹ 0.1 [1% of (a)]
\n(d) IGST- ₹ 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) BCD- 10%
\n(2) IGST-12%
\n(3) Education cess – 2%
\n(4) Higher education cess -1%
\n(5) Compensation cess- 10%
\nIn view of the above parameters, the calculation of duty would be as below:
\n(a) BCD = ₹ 10 [10% of A.V.]
\n(b) Education cess- ₹ 0.2 [2% of (a)]
\n(c) Higher education cess- ₹ 0.1 [1% of (a)]
\n(d) IGST- ₹ 13.236 [A.V.+(a)+(b)+(c)]x12%
\n(e) Compensation cess- ₹ 11.03 [A.V.+(a)+(b)+(c)]x 10%
\nCase 3. Wher<\/p>\n
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\n(e) IGST- ₹ 34.69 [A.V.+(a)+(b)+(c)+(d)]x 28%
\n(f) Compensation cess – ₹ 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, calculation of Anti-Dumping Duty or Safeguard duty would be as per the respective notification issued for levy of such duty. It is also clarified that value for calculation of IGST as well as Compensation Cess shall also include Anti-Dumping Duty amount and Safeguard duty amount.
\nThe Custom duty calculator inclusive of IGST and GST Compensation Cess would be available on CBEC website (https:\/\/www.cbec.gov.in) and ICEGATE website (https:\/\/www.icegate.gov.in).
\nIV. Place of Supply
\nAs per section 11 of IGST Act, the place of supply for goods, imported into India shall be the location of the importer.
\nFor example, importer is located in MP, state tax component of IGST shall accrue to the state of MP.
\nV. Changes in import p<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nVI. Import under Export Promotion Scheme and duty payment through EXIM scrips
\nUnder the GST regime, only Customs duties will be exempted on imports made under export promotion schemes namely EPCG, DEEC (Advance License) and DFIA.
\nIGST and Compensation Cess will have to be paid on such imports.
\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.
\nThe scrips cannot be utilized for payment of Integrated Tax and Compensation Cess.
\nSimilarly, scrips cannot be used for payment of CGST, SGST or IGST for domestic procurements.
\nVII. Imports by EOUs\/EHTPs\/STPs
\nImports by EOUs\/EHTPs\/STPs will attract IGST from Ist July, 2017.
\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<\/p>\n
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\nIn the GST regime, for the purpose of levying IGST all the imports under the project import scheme will be classified under heading 9801 and duty shall be levied @ 18%.
\nX. Baggage
\nFull exemption from IGST has been provided on passenger baggage.
\nHowever, 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 as provided under the Baggage Rules, 2016.
\nXI. 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 <\/p>\n
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\nHowever, certain items which are out of the GST net would be eligible for SAD refunds as earlier.
\nXII. Imports and Input Tax Credit (ITC)
\nIn GST regime, input tax credit of the integrated tax (IGST) and GST Compensation Cess shall be available to the importer and later to the recipients in the supply chain.
\nHowever the credit of basic customs duty (BCD) would not be available.
\nIn order to avail ITC of IGST and GST Compensation Cess, an importer has to mandatorily declare GST Registration number (GSTIN) along with Import Export Code in the Bill of Entry.
\nProvisional IDs issued by GSTN can be declared during the transition period.
\nHowever, 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.
\nInput tax credit shall be availed by a regi<\/p>\n
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