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TMI BlogImports in GST RegimeX X X X Extracts X X X X X X X X Extracts X X X X ..... to a Special Economic Zone developer or a unit shall be treated as inter-State supply and shall be subject to levy of integrated tax. Importer Exporter Code (IEC): As per DGFT s Trade Notice No. 09 dated 12.06.2017, the PAN of an entity would be used as the Import Export code (IEC). Wherever an applicant applies for IEC, the PAN of the applicant will be authorized as an IEC. The importer would only be required to declare only GSTIN (where registered under GST). Import of Goods The import of goods has been defined in the IGST Act, 2017 as bringing goods into India from a place outside India. All imports shall be deemed as inter-State supplies and accordingly Integrated tax shall be levied in addition to the applicable Custom duties. 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. The integrated tax on goods shall be in addition to the applicable Basic Customs Duty (BCD) which is levied as per the Customs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23 24 25 26 27 under the IGST Act, 2017 on a like article on its supply in India. Further, 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. The value of the imported article for the purpose of levying cess shall be assessable value plus Basic Customs Duty levied under the Act, and any sum chargeable on that 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. Let s take an example: Suppose the assessable value of an article imported into India is ₹ 100/-. Basic Customs Duty is 10% ad-valorem. Education Cess is 3%; Integrated tax rate is 18% and Compensation Cess is 15% The taxes will be calculated as under: Particulars Duty (A) Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall be treated as an inter-State supply. Thus, such a transaction of sale/transfer will be subject to IGST under the IGST Act, 2017. The value of such supply shall be determined in terms of section 15 of the CGST Act, 2017 read with section 20 of the IGST Act, 2017 and the rules made thereunder, without prejudice to the fact that customs duty (which includes BCD and applicable IGST payable under the Customs Tariff Act) will be levied and collected at the ex-bond stage. Leviability of Integrated Tax on High Seas Sales Transactions (Circular No. 33/2017-Customs dated 1 st August, 2017): High Sea Sales is a common trade practice whereby the original importer sells the goods to a third person before the goods are entered for customs clearance. After the High sea sale of the goods, the Customs declarations i.e. Bill of Entry etc. is filed by the person who buys the goods from the original importer during the said sale. IGST on high sea sale (s) transactions of imported goods, whether one or multiple, shall be levied and collected only at the time of importation i.e. when the import declarations are filed before the Customs authorities for the customs clearance purposes for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered as a supply. Thus, in general, import of services without consideration shall not be considered as supply. However, business test is not required to be fulfilled for import of service to be considered as supply. Furthermore, in view of the provisions contained in Schedule I of the CGST Act, 2017, the import of services by a taxable person from a related person or from a distinct person as defined in Section 25 of the CGST Act, 2017, in the course or furtherance of business shall be treated as supply even if it is made without any consideration. In view of the provisions contained in Section 14 of the IGST Act, 2017, import of free services from Google and Facebook by individuals without any consideration are not considered as supply. Import (Downloading) of a song for consideration for personal use would be a service, even though the same are not in the course or furtherance of business. Import of some services by an Indian branch from their parent company, in the course or furtherance of business, even if without consideration will be a supply. Thus, import of services can be considered as supply based on whether there is consideration or not and whether the se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here the services are actually performed Services which require the physical presence of the recipient or the person acting on his behalf with the supplier of services 2.1 Services are provided on goods but from a remote location by way of electronic means Location where goods are situated at the time of supply of services 2.2. Above provisions is not applicable in respect of goods which are temporarily imported into India for repairs and are exported after repairs 3. Services supplied directly in relation to an immovable property Place where the immovable property is located or intended to be located 4. Admission to, or organisation of an event Place where the event is actually held 4.1 Above Services provided in more than one country including India India 4.2 Above Services provided in more than one state Proportionate Basis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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