TaxTMI 
TaxTMI 
Guidance Note for Importer and Exporter on GST roll out
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....there would be no impact on levy of Basic Customs duty, Education Cess, Anti-dumping duty, Safeguard duty and the like. However, the Additional duties of Customs, which are in common parlance referred to as Countervailing Duty (CVD) and Special Additional duty of Customs (SAD), would be replaced with the levy of Integrated Goods and Services Tax(IGST), barring a few exceptions.On the exports side, export would be treated as zero-rated supply. Under zero-rated supply IGST paid on export goods or the input tax credit proportionate to the goods and services consumed in goods exported under bond LUT would be refunded. A brief summary of the changes that would impact importers and exporters upon roll out of GST are encapsulated below: II. Duties at the time of import: Imports under GST 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 importswould attract levy of IGST. Further, a few products such as acrate....
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....heir 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. Valuation and method of calculation: IGST is leviable on the value of imported goods and for calculating integrated tax on any imported article, the value of such imported goods would be the aggregate of- (i) (ii) the value of 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 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). The value of the imported article for the purpose of levying GST Compensation cess shall be, assessable value plus Basic Customs Duty levied under the Act, and any sum chargeable on the goods un....
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....e to be paid on such imports. The EXIMscrips under the export incentive schemes of chapter 3 of FTP (for example MEIS and SEIS) can be utilised only for payment of Customs dutiesor additional duties of Customs, on items not covered by GST,at the time of import. The scrips cannot be utilized for payment ofIntegrated Tax and Compensation Cess. Similarly, scripscannot be used for payment of CGST, SGST or IGST for domestic procurements. Document 4 VI. EOUS and SEZ: EOUS/EHTPS/STPs will be allowed to import goods without payment of basic customs du (BCD) as well additional duties leviable under Section 3 (1) and 3(5) of the Customs Tariff A GST would be leviable on the import of input goods or services or both used in the manufactu by EOUS which can be taken as input tax credit (ITC). This ITC can be utilized for payment GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claime under Section 54(3) of CGST Act. In the GST regime, clearance of goods in DTA will attra GST besides payment of amount equal to BCD exemption availed on inputs used in such finishe goods. DTA clearances of ....
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....hat SAD paid by dealers/ traders can be set-off against their GST liability as and when imported goods are supplied by them in the domestic market. However, certain items which are out of the GST net would be eligible for SAD refunds as earlier. XL. Imports and Input Tax Credit (ITC): In 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, 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....
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....ified before 1.7.2017. The AIR for post transition period shall be notified in due course of time. The certificates from jurisdictional GST officer as referred above may not be available during initial days. As per Systems design, whenever higher rate (composite rate) of drawback is claimed, the non- availment of credit certificate is a mandatory document and unless it is recorded as available, shipping bill will not move to LEO stage. In such a situation, all field formations shall ensure that exports are not delayed for requirement of the said certificate. The way out in such situation for the exporter is to amend the shipping bill to claim lower rate. The exporter will have an option to file supplementary claim as per Drawback Rules at a later date once the certificate is obtained. A similar issue in respect of Cenvat credit has been examined and clarified in the past vide Instruction no. 609/159/2016-DBK dated 13.03.2014. Secondly, it could be possible that export goods may be manufactured by using both Central Excise/Service Tax paid and CGST/IGST paid inputs and inputs services or only CGST/IGST Document 7 pa....
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.... of the conveyance carrying the export goods duly files an export manifest or an export report covering the number and the date of shipping bills or bills of export and the applicant has furnished a valid return. Document 8 For both option (a) and (b) exporters have to provide details of GST invoice in the Shipping bill. ARE-1 which is being submitted presently shall be dispensed with except in respect of commodities to which provisions of Central Excise Act would continue to be applicable. XIV. Change in export Procedures: Electronic as well as manual Shipping Bill formats including Courier Shipping Bill are being amended to include GSTIN and IGST related information so as to ensure that the export benefits like refund of IGST paid as well asaccumulated input tax credit can be processed seamlessly. For the benefit of the trade, modified Forms have been hosted on the departmental website, www.cbec.gov.in. Further, suitable notifications shall be issued to amend the relevant regulations and introduce modified Forms. XV. Export under factory stuffing procedures: In the context of GST, taking into account the obligati....