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TMI BlogChanges in Customs law and procedure in view of GST Roll outX X X X Extracts X X X X X X X X Extracts X X X X ..... mports from the very first day, the credit of which shall be available to the importers. Similarly, the refund on export of goods is contingent upon filing of (a) shipping bill accompanied by the GST invoice and (b) export general manifest. Therefore, Customs officers, trade and partner stakeholders have to be aware of 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 01.07.2017. 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 va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 12 of the Customs Act, 1962. 2. Thus, with effect from 01.07.2017, 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 regards necessary amendments have been made in section 3 of the Customs Tariff Act, 1975 vide the Taxation Laws (Amendment) Act, 2017 (18 of 2017) dated the 4t May, 2017 wherein under sub-section (7), sub-section (8), sub-section (9) sub-section (10) of section 3 of the Customs Tariff Act, 1975, it has been provided as below: (7) Any ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rticle 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 or the tariff value of such article fixed under sub-section (2) of that section, as the case may be; and (b) any duty of customs chargeable on that article under section 12 of the Customs Act, 1962, and any sum chargeable on that article under any law for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 01.07.2017, it would be mandatory for the importers to declare their GSTN, 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 state code as per the Census of India. This is required for transfer of the IGST paid by the non GST importers to the account of the consumption state. Diplomatic organisations or UN bodies can quote their UIN issued by GSTN on the Bill of Entry. In this regard, DGFT has also issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 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 b 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 credit of input tax may be availed for making zero- rated supplies, notwithstanding that such supply may be an exempt supply. The section further lays down that a registered person making zero rated supply shall be eligible to claim refund under either of the following options, namely: (a) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 IGST credit shall happen electronically between Customs EDI and GSTN, it is imperative hereon that the required data is captured electronically without fail for all the imports and exports whether or not through EDI locations. In case of EDI locations, Board has issued instruction vide F.No. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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