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TMI BlogC.B.E. & C. Advisory on Customs related matters on introduction of Goods and Services Tax regimeX X X X Extracts X X X X X X X X Extracts X X X X ..... GST invoice and (b) export general manifest. You would thus appreciate the immediate need for sensitising our officers, trade and partner stakeholders to the changes imminent on the Customs side. Changes in Customs law and procedure are accompanied by changes in the EDI system so as to effectively implement the IGST law from 1-7-2017. The changes are broadly in the following areas : * Levy of duties - IGST and Compensation Cess (wherever applicable) to be levied on imports. * Change in Bill of Entry and Shipping Bill forms - To capture additional details required for validation with GSTN in case of IGST refund claims (export) or availability of IGST credit (imports). * Procedure in respect of manual filing of Bills of Entry and Ship ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods imported into India shall be levied and collected in accordance with the provisions of section 3 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 section 12 of the Customs Act, 1962." 2. Thus, with effect from 1-7-2017, all imported goods shall attract IGST (and compensation cess, wherever applicable) in addition to the Customs duties such as Basic Customs Duty etc. However, the levy of CVD and SAD shall cease to exist on imported goods other than those on which Central Excise Duty/VAT continues to be levied even in the new regime. In this regard necessary amendments have been made in section 3 of the Customs Tariff Act, 1975 vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll, in addition, be liable to the goods and services tax compensation cess at such rate, as is leviable under section 8 of the Goods and Services Tax (Compensation to States) Cess Act, 2017 on a like article on its supply in India, on the value of the imported article as determined under sub-section (10). (10) For the purposes of calculating the goods and services tax compensation cess under sub-section (9) on any imported article where such cess is leviable at any percentage of its value, the value of the imported article shall, notwithstanding anything contained in section 14 of the Customs Act, 1962, be the aggregate of - (a) the value of the imported article determined under sub-section (1) of section 14 of the Customs Act, 1962 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he changes in the declaration, rest of the procedure with regard to clearance of imports and exports would remain the same. EDI Bill of Entry : 5. It may be noted that with the introduction of GST, information in the Bill of Entry would be reconciled with their returns filed on GSTN. Accordingly, credit claimed in their GST Return in respect of IGST paid on imports would be cross checked with the Customs EDI system. Therefore, with effect from 1-7-2017, it would be mandatory for the importers to declare their GSTIN, i.e., the GST registration number on the Bill of Entry if they wish to claim the credit of the IGST paid on the imported goods. Importers not registered with GSTN will be required to declare their PAN along with their sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or (a) levy and (b) exemption shall be issued by TRU shortly. The importer shall have to quote the relevant number of the levy notification as well as the exemption notification (wherever applicable) in respect of each imported item for application of correct rate. The IGST and Compensation Cess notifications directories are being developed in the EDI System to automatically calculate the levy on imported goods. The total IGST and Compensation Cess paid will be published on every Bill of Entry which can be quoted by the importer to claim the corresponding credit in the GST return. EDI Shipping Bill : 7. The Integrated Goods and Services Tax Act, 2017, under section 16 provides that export of goods shall be zero rated supply and credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to facilitate proof of export, Shipping Bill forms have also been modified to capture details such as GSTIN of the exporter, GST export invoice number etc. The exporter shall have to declare item-wise taxable value and corresponding IGST on the Shipping Bill. All these details will be used to validate the declarations made by the exporter on the GST return to confirm export. 10. For the time being, importers/exporters are advised to declare GSTIN, PAN and IEC while filing document for import/export of goods. However, over a period of time, declaration with regard to only GSTIN and PAN shall be required in the Shipping Bill. Manual Bill of Entry and Shipping Bill : 11. Since all the validation related to IGST refund or flow of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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