Calculation on Import Duty Post GST

[Kishan Barai]

Case 1.-Where product attracts IGST but not CVD
Suppose Assessable Value (A.V.) including landing charges =Rs. 100/-

(1) BCD- 10%
(2) IGST-12%
(3) Education cess – 2%
(4) Higher education cess -1%

In view of the above parameters, the calculation of duty would be as below:

(a) BCD = ₹ 10 [10% of A.V.]
(b) Education cess- ₹ 0.2 [2% of (a)]
(c) Higher education cess- ₹ 0.1 [1% of (a)]
(d) IGST- ₹ 13.236 [A.V.+(a) +(b) +(c)]x12%

Case 2. Where product does not attract CVD but attract IGST as well as compensation cess
Suppose Assessable Value (A.V.) including landing charges =Rs. 100/-

(1) BCD- 10%
(2) IGST-12%
(3) Education cess – 2%
(4) Higher education cess -1%
(5) Compensation cess- 10%

In view of the above parameters, the calculation of duty would be as below:

(a) BCD = ₹ 10 [10% of A.V.]
(b) Education cess- ₹ 0.2 [2% of (a)]
(c) Higher education cess- ₹ 0.1 [1% of (a)]
(d) IGST- ₹ 13.236 [A.V.+(a)+(b)+(c)]x12%
(e) Compensation cess- ₹ 11.03 [A.V.+(a)+(c)+(d)]x 10%

Case 3. Where product attract both CVD & IGST:
Suppose Assessable Value (A.V.) including landing charges =Rs. 100/-

(1) BCD- 10%
(2) CVD- 12%
(3) IGST-28 %
(4) Education cess – 2%
(5) Higher education cess -1%

In view of the above parameters, the calculation of duty would be as below:

(a) BCD = ₹ 10 [10% of A.V.]
(b) CVD = ₹ 13.2 [ 12% of (A.V.+ BCD)
(c) Education cess- ₹ 0.464 [2% of (BCD+CVD)]
(d) Higher education cess- ₹ 0.232 [1% of (BCD+CVD)]
(e) IGST- ₹ 34.69 [A.V.+(a)+(b)+(c)+(d)]x 28%

Case 4. Where product attract CVD, IGST& Compensation cess:
Suppose Assessable Value (A.V.) including landing charges =Rs. 100/-

(1) BCD- 10%
(2) CVD- 12%
(3) IGST-28 %
(4) Education cess – 2%
(5) Higher education cess -1%
(6) Compensation cess-10%

In view of the above parameters, the calculation of duty would be as below:
(a) BCD = ₹ 10 [10% of A.V.]
(b) CVD = ₹ 13.2 [ 12% of (A.V.+ BCD)
(c) Education cess- ₹ 0.464 [2% of (BCD+CVD)]
(d) Higher education cess- ₹ 0.232 [1% of (BCD+CVD)]
(e) IGST- ₹ 34.69 [A.V.+(a)+(b)+(c)+(d)]x 28%
(f) Compensation cess – ₹ 12.389 [A.V.+(a)+(b)+(c)+(d)]x 10%

In cases where imported goods are liable to Anti-Dumping Duty or Safeguard Duty, calculation of Anti-Dumping Duty or Safeguard duty would be as per the respective notification issued for levy of such duty. It is also clarified that value for calculation of IGST as well as Compensation Cess shall also include Anti-Dumping Duty amount and Safeguard duty amount.

Discussions to this article

[KASTURI SETHI]

Dear Sir,

You have prepared ready reckoner. Made easy for everybody to grasp.

[NARENDRA SEKSARIA]

WHY EDUCATION CESS--HIGHER ED CESS-CANCELL/UNNECESSARY-LET SIMPLYFY

[KIRTIKUMAR PUROHIT]

Calculation on Import Duty Post GST give in Indian Customs gears up for GST roll-out Guidance Note for Importers and Exporters PDf Page No. 9, 10 and 11 please select below link to see this.

http://www.cbec.gov.in/resources//htdocs-cbec/deptt_offcr/gst-advisory-importers-exporters-final-version-final.pdf

[Ganeshan Kalyani]

Nice article . Thanks

[Kishan Barai]

In view of the above parameters, the calculation of duty would be as below:

(a) BCD = ₹ 10 [10% of A.V.]
(b) Education cess- ₹ 0.2 [2% of (a)]
(c) Higher education cess- ₹ 0.1 [1% of (a)]
(d) IGST- ₹ 13.236 [A.V.+(a)+(b)+(c)]x12%
(e) Compensation cess- ₹ 11.03 [A.V.+(a)+(b)+(c)]x 10% [Small Correction from my above Post]

[Nandan Khambete]

The above calculation of gst i found in the guide give by cbec.

How should be calculation of IGST in case of Imports under Advance license ?

[Kishan Barai]

I had posted this re edited article as there was error in formula in CBEC website, also do read my comment of changes made, there would be exemption of Basic duty only for imports under AA, IGST has to paid on inputs & while doing 15% VA on exports IGST has to claim back, it is ruled as of now, updates will follow on CBEC