TaxTMI 
TaxTMI 
C.B.E. & C. Advisory on Customs related matters on introduction of Goods and Services Tax regime
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....port 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. Changes in Customs law and procedure are accompanied by changes in the EDI system so as to effectively implement the IGST law from 1-7-2017. The changes are broadly in the following areas : • Levy of duties - IGST and Compensation Cess (wherever applicable) to be levied on imports. • Change in Bill of Entry and Shipping Bill forms - To capture additional details required for validation with GSTN in case of IGST refund claims (export) or avai....
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....nd collected in such manner as may be prescribed and shall be paid by the taxable person : Provided that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962." 2. Thus, with effect from 1-7-2017, all imported goods shall attract IGST (and compensation cess, wherever applicable) in addition to the Customs duties such as Basic Customs Duty etc. However, the levy of CVD and SAD shall cease to exist on imported goods other than those on which Central Excise Duty/VAT continues to be....
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....n 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). (9) Any article which is imported into India shall, in addition, be liable to the goods and services tax compensation cess at such rate, as is leviable under section 8 of the Goods and Services Tax (Compensation to States) Cess Act, 2017 on a like article on its supply in India, on the value of the imported article as determined under sub-section (10). (10) For the purposes of calculating the goods and services tax compensation cess under sub-section (9) on any imported article where such cess is leviable at any percentage of its value, the value of the imported article shall, notwi....
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....orms are available on the official website of CBEC (www.cbec.gov.in). All importers, exporters, Customs Brokers, Customs clearance software providers and other stakeholders are advised to get themselves familiar with the modified Forms. It is emphasized that other than the changes in the declaration, rest of the procedure with regard to clearance of imports and exports would remain the same. EDI Bill of Entry : 5. It may be noted that with the introduction of GST, information in the Bill of Entry would be reconciled with their returns filed on GSTN. Accordingly, credit claimed in their GST Return in respect of IGST paid on imports would be cross checked with the Customs EDI system. Therefore, with effect from 1-7-2017, it would b....
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....required in the Bill of Entry. 6. For calculating the IGST or Compensation Cess, chapter wise, rate wise GST schedule, IGST exemption, concession list and GST Compensation Cess rates are already available on the official website of CBEC. In this regard, notifications for (a) levy and (b) exemption shall be issued by TRU shortly. The importer shall have to quote the relevant number of the levy notification as well as the exemption notification (wherever applicable) in respect of each imported item for application of 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 publish....
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....s shall be made once the EGM is filed. The taxpayer (exporter) shall be granted refund of the IGST paid by him on the exported goods based on the validation by Customs EDI system. This validation shall also act as the proof of export in case the exporter has made the supply under bond or LUT without payment of IGST. 9. In order 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. 10. For the time being, im....