TaxTMI 
TaxTMI 
Imports
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....tion (10) of Section 2 of the IGST Act, 2017 as bringing goods into India from a place outside India. The IGST Act, 2017 provides that the integrated tax on goods shall be in addition to the applicable Basic Customs Duty (BCD) which is levied as per the Customs Tariff Act. In addition, GST compensation cess, may also be leviable on certain luxury and de-merit goods under the Goods and Services Tax (Compensation to States) Cess Act, 2017. Q 67. What valuation is to be adopted for levying integrated tax and compensation cess? Ans. The value of the goods for the purpose of levying Integrated tax as well as compensation cess shall be assessable value plus Customs Duty levied under the Act, and any other duty chargeable on the said goods unde....
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....ated Tax @18% Rs.23.58 (G) Value for Compensation Cess Rs.131/- (H) Compensation Cess @ 15% ₹ 19.65 (I) Total Duty ( B+C +D+F+H) ₹ 74.23 Q 69. Whether GST is leviable on baggage imports? Ans. Passenger Baggage are exempted from IGST as well as compensation cess. The basic customs duty at the rate of 35% and the applicable education cess shall be leviable on the value which is in excess of the duty free allowances provided under the Baggage Rules, 2016. Q 70. Please explain the tax treatment of goods imported into India and deposited in a warehouse and sold while in warehouse before clearance from Customs Ans. The Customs Act, 1962 provides for removal of goods from a customs station to a wareho....
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...., with effect from 31st March, 2018, so as to provide that the valuation for the purpose of levy of integrated tax on warehoused imported goods at the time of clearance for home consumption would be either the transaction value or the value as per section 3(8) of the CTA (i.e. valuation done at the time of filing the into-bond bill of entry), whichever is higher. Thus, the integrated tax shall be levied and collected at the time of final clearance of the warehoused goods for home consumption i.e., at the time of filing the ex-bond bill of entry and the value addition accruing at each stage of supply shall form part of the value on which the integrated tax would be payable at the time of clearance of the warehoused goods for home consumptio....
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....one for authorised operations, are exempted from the whole of the integrated tax leviable thereon under section 5 of the IGST Act, 2017 vide Notification No. 18/2017-Integrated tax dated 30th June, 2017. Import of goods by 100% EOU's are governed by Notification no. 52/2003-Customs as amended by Notification no. 78/2017-Customs dated 13.10.2017. EOUs are allowed duty free import of goods (exempt from Customs duties, IGST & Compensation Cess) under the said notifications. However, exemption from IGST is only available till 01.10.2019. Q 73. What are import of services? How are they treated in GST? Ans. Import of services has specifically been defined under IGST Act, 2017 and refers to supply of any service where the supplier is located ou....
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.... or furtherance of business. The same has been explained in the table below: Nature of Service Consideration Business Test Import of services Necessarily Required Not required Import of services by a taxable person from a related person or from a distinct person Not required Necessarily Required Q 74. As per the Customs Act, 1962, royalty and license fees are includible in the assessable value of goods. Whether GST is also payable on such royalty and license fees which is already included in the value of goods and IGST is already paid at the time of import? Ans. No. As per the notification no. 06/2018-Integrated tax dated 25th January, 2018, supply of services, imported into the territory of India covered....
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....ed from payment of integrated tax at the time of import subject to the importer undertaking to pay integrated tax on lease charges and other conditions as stipulated in notification no. 65/2017-Customs dated 8th July, 2018 Q 78. Whether import of rigs and ancillary goods imported under lease is chargeable to IGST? Ans. Import of rigs and ancillary goods imported under lease is exempted from IGST, subject to payment of appropriate IGST on the supply/import of such lease service and fulfilment of other specified conditions. Q 79. Whether bona fide gifts imported through post or air are exempted? Ans. Bona fide gifts up to CIF value limit of ₹ 5000 imported through post or air are exempted from payment of basic customs duty and integ....