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TMI BlogImportsX X X X Extracts X X X X X X X X Extracts X X X X ..... to States) Cess Act, 2017 . Q 67. What valuation is to be adopted for levying integrated tax and compensation cess? Ans. The value of the goods for the purpose of levying Integrated tax as well as compensation cess 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. For instance: Suppose the assessable value of an article imported into India is ₹ 100/-. Basic Customs Duty is 10% ad-valorem; SWC- 10%; Integrated tax rate is 18% and compensation cess is 15%. The taxes will be calculated as under: Particulars Duty (A) Assessable Value ₹ 100/- (B) Basic Customs Duty@10% Rs.10/- (C) Social Welfare Charge @10% Rs.1/- (D) Value for Integrated Tax Rs.111/- (E) Integrated Tax @18% Rs.19.98 (F) Value for Compensation Cess Rs.111 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... warehouse is a common trade practice whereby the importer files an into-bond bill of entry and stores the goods in a customs bonded warehouse and thereafter, supplies such goods to another person who then files an ex-bond bill of entry for clearing the said goods from the customs bonded warehouse for home consumption. As per section 7(2) of the IGST Act, 2017 , the supply of goods imported into the territory of India, till they cross the customs frontiers of India, is treated as a supply of goods in the course of inter-State trade or commerce. Further, the proviso to section 5(1) of the IGST Act provides that the integrated tax on goods imported into India would be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 . Thus, in case of supply of the warehoused goods, the point of levy would be the point at which the duty is collected under section 12 of the Customs Act, 1962 which is at the time of clearance of such goods under section 68 of the Customs Act. The Customs Tariff Act has been amended and a sub-section (8A) has been inserted in section 3 of the CTA vide Finance Act, 2018 , with effect from 31st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication No. 18/2017-Integrated tax dated 30th June, 2017 . Import of goods by 100% EOU s are governed by Notification no. 52/2003-Customs as amended by Notification no. 78/2017-Customs dated 13.10.2017 . EOUs are allowed duty free import of goods (exempt from Customs duties, IGST Compensation Cess) under the said notifications. However, exemption from IGST is only available till 01.10.2019. Q 73. What are import of services? How are they treated in GST? Ans. Import of services has specifically been defined under IGST Act, 2017 and refers to supply of any service where the supplier is located outside India, the recipient is located in India and the place of supply of service is in India. As per the provisions contained in Section 7(1) (b) of the CGST Act, 2017 , import of services for a consideration whether or not in the course or furtherance of business shall be 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nefits, EOUs will have to follow the procedure under the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 Q 76. Is the registered person procuring goods or services from a supplier outside India required to raise a self-invoice, debit note or credit note in respect of the price or value of services and adjustments thereto? Ans. As the import of goods are under the cover of a bill of entry, there is no need to raise a self-invoice. In case of import of services, a self-invoice on the date of receipt of such supplies is required to be issued. [ Section 31(3)(f) of CGST Act read with section 20 of the IGST Act ] Q 77. An airline imports aircrafts into India on lease basis. Whether integrated tax is to be charged on such supplies as such supplies are supply of services under item 1(b) or 5(f) of Schedule II of the CGST Act ? Ans. In case integrated tax is paid on the lease charges under the IGST Act , the goods imported are exempted from payment of integrated tax at the time of import subject to the importer undertaking to pay integrated tax on lease charges and other conditions as stipulated in notification no. 65/2017-Customs dated 8t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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