Dear All,
CBEC has recently clarified the calculations of GST levy on Imports, below is a quick calculation for your kind reference of the Taxes that shall be levied on import of goods and services in the GST regime from 1.7.2017.
Sample Calculation of Import Duty under GST regime –
|
PARTICULARS |
Formula |
POST GST |
| A |
CIF value |
|
100.00 |
| B |
Add: Landing Charges @ 1% |
A*1% |
1.00 |
| C |
Assessable Value for Custom Duty |
A+B |
101.00 |
| D |
Add: Basic custom duty @ 10% |
C*10% |
10.10 |
| E |
Total |
C+D |
111.10 |
| F |
Add: EC and SHEC@ 3% |
D*3% |
0.30 |
| G |
Total |
E+F |
111.40 |
| H |
Add: IGST @ 18% |
G*18% |
# 20.05 |
| I |
Total Duty Payable |
D+F+H |
30.46 |
| J |
Total Import Cost |
C+I |
131.46 |
| K |
Total INPUT TAX CREDIT POOL |
H |
20.05 |
| L |
Effective Procurement Cost |
J-K |
111.40 |
# The Amount of IGST will be charged on the amount inclusive of the Landing Cost + Basic Custom Duty + Custom Cess.
OTHER POINTS OF CLARIFICATION FOR IMPORT PURPOSES:
IGST, GST Compensation Cess, Bill of Entry Forms:
Duties at the time of Import:
| Situation |
Cargo Arrival date |
BOE Date |
Tax Applicable |
| Case-I |
On or After 1st July 2017 |
On or After 1st July 2017 |
IGST + Compensation cess wherever applicable |
| Case-II |
Before 1st July 2017 |
On or After 1st July 2017 |
IGST + Compensation cess wherever applicable |
| Case-III |
On or After 1st July 2017 |
Advance BOE before 1st July 2017 along with payment of duty |
The BOE may be recalled and reassessed by Proper officer for levy of IGST + Compensation cess wherever applicableBOE-GST-Formats (1) |
- Additional Duty of Customs would continue to be levied for imports of Petroleum and Tobacco Products
- New Bill of Entry, Shipping Bill and Courier import and Export Forms – both electronic and manual – are going to be used. (Please find attached the BOE Format as issued by CBEC for your reference).
Imports and Input Tax Credits:
- All Importers/Exporters have to mandatorily declare GST Registration Number (GSTIN) along with Import Export Code (IEC) in the Bills of entry,Shipping Bills & Courier Forms.
- Provisional IDs issued by GSTIN can be declared during the transition period. However , Imports and Exporters are advised to complete their Registration process for GSTIN.
- ITC of IGST would be available based on GSTIN declared in the bill of entry.
- Customs EDI System would be GST ready by 1st July, 2017 and all out efforts are being made for smooth transition.
- Customs EDI Systems would be interconnected with GSTN for Validation of ITC.
- Bill of Entry data in Non- EDI locations would be digitized and used for validation of Input Tax Credit data provided by GSTN.
Hope the same is useful. Please let us know for any further clarifications on the same.
Thanks & Regards,
GST Team
Mayur Batra & Co
Mr.A.K.Mehra
Senior Advisor
Retd. Commissioner
Central Excise-Service Tax
CA Peeyush Joardar
Partner
CA Minal Agarwal
Manager
Tel- 011-43616263,Extn 227/233
Email-
[email protected] 
