Import of Goods under GST

Import of Goods under GST: 10 Key Points

Principally, import of goods is governed by Customs Act followed by other indirect tax levies. The Import of goods has been defined in the IGST Act, 2017 as bringing goods into India from a place outside India.

In this context, here are 10 key points that are significant for importer of goods/services under GST:

  1. All imports shall be deemed as Inter-state supplies and accordingly Integrated tax shall be levied in addition to the applicable Customs Duties.

  2. The IGST Act, 2017 provides that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions 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 the Customs Act, 1962.

  3. The integrated tax on goods shall be in addition to the applicable Basic Customs Duty which is levied as per the Customs Tariff Act.

  4. In addition, GST compensation cess, may also be leviable on certain luxury and demerit goods under the Goods and Service Tax Cess Act, 2017.

  5. The Value of the goods for the purpose of levying integrated tax shall be, assessable value plus Customs Duty levied under the Act, and any other duty chargeable on the said goods under any law for the time being in force as an addition to, and in the same manner as, a duty of customs.

  6. The value of the imported goods for the purpose of levying cess, shall be, assessable value plus Basic customs Duty ?levied under the Act, and any sum chargeable on the goods under any law for the time being, in force as an addition to, and in the same manner as, a duty of customs. The integrated tax paid shall not be added to the value for the purpose of calculating cess.

  7. Importer would not be required to pay the Integrated tax at the time of removal of goods from a customs station to a warehouse.

  8. Input tax credit(ITC) of the integrated tax paid at the time of import shall be available to the importer and the same can be utilized by him as Input Tax Credit for payment of taxes on his outward supplies.

  9. The Basic Customs Duty, shall however, not be available as input tax credit.

  10. The Place of supply of goods, importer into India shall be the location of the importer. For example: if an importer, says is located in Karnataka, the state tax component of the integrated tax shall accrue to the state of Karnataka.

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