GST on Imports in India

Imports of Goods and Services will be treated as inter-state supplies and IGST will be levied on import of goods and services into the country. The incidence of tax will follow the destination principle and the tax revenue in case of SGST will accrue to the State where the imported goods and services are consumed. Full and complete set-off
will be available on the GST paid on import on goods and services.

Is GST need to be paid for imports? What are the effect of GST on imports?

Is GST applicable for importers? What is the rate of GST for importers? How does GST effect Importers? CGST rate for Imports? Is SGST applicable for Importers?

As per the guidelines ready for Central Goods and Service Tax Act 2016, the import shipments are attracted CGST. A certain percentage of SGST (State Goods and Service Tax) is also applicable for imports as per the guidelines of SGST Act 2016.

Import of goods or services would be treated as inter-State supplies and would be subject to IGST in addition to the applicable customs duties.

How does the CGST and SGST work in import trade?

SGST paid against imports is credited to state government against the states which imported goods are finally consumed in. CGST is transferred to central government.

How does GST work in Import duty calculation structure?

Basic customs duty remains the same as usual. Once after deriving assessable value of imported goods, basic customs duty is finalized. So, even after introduction of Goods and Service Tax (GST), there is no changes in basic customs duty structure fixing by central government time to time.

What happens for SAD and CVD on imports when GST implements?

Additional customs duty will be merged with GST at the time of import. In other words, the additional custom duty in lieu of CVD /Excise and the Special Additional Duty (SAD) in lieu of sales tax/VAT will be subsumed in GST.

The above information provides the impact of GST on imports. It also clarifies whether GST is applicable for importers? How are SAD and CVD treated in import duty calculation? How does GST effect Importers? CGST rate for Imports? Is SGST applicable for Importers?

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Comments

Swapan Bose : On 09 August 2016 We Swapnica Exim Trading Solutions Private Limited, We are import products of Proma Doors, OB Modular Kitchen, Kider Wooden Flooring and Omeya Bath Set from Spain. We want to know about Custom Duty calculated after apply CGST,SGST & IGST? Please clarify

Admin: On 09 August 2016 Hi Swapan Bose, GST Act is yet to imlement likely to be in 2017

Shaikh Riyaz: On 29 March 2017 Dear Sir, As we all know that Government is planning to bring GST in Indian Economic from July. I want to know if we are buying Food Grain ( E.g. Rice, wheat, Dal etc) how end buyer come to know the actual MRP for the same. Since RSP is not going to past on that raw product. Every body can not buy in Bags .

KRISHNAMARAJU DOMMARAJU: On 29 March 2017 Importing wines from different parts of the globe. At the port of destination, Customs gives me assessed value based on CIF rate and adding 1% . I keep Wines in a custom approved bonded ware house and ex bond them when I get order from Hotels, clubs or whoever holds holds liquor license. Supply against duty free license or by paying duty which stands around 160% on assessed value to day. Then when it goes to each state, either prepaid or post paid, wine sales are subjected to local excise and State local sales tax which is as high as 58% on retail price which include all costs involved so far and the profitability of the outlet selling wines selling to final consumer. In a state like Tamil Nadu, if I am selling through TASMAC, ASSESSED VALUE, CUSTOMS DUTY, TN Local excise fees, Tasmac fees for processing orders, Tasmac margin for selling through their outlets AND ON ALL THESE 58% SALES TAX, IN FIXING MRP. iF i sell wine to Tasmac at inr 360 per bottle of 750ml,including freight to Chennai from Delhi, Tasmac MRP is INR.1650 PER BOTTLE OF 750 ML. Will new GST bring in any reduction so that people can go in for wine drinking instead of hard liquor? God only knows!

durgesh vaidya: On 04 April 2017 i am importing tyre from thailand, for direct sale,what are % of taxes payable after gst

Swapnil Kadam : On 24 April 2017 Can you share me the excel sheet of present Import Duty Calculation and after GST is implemented what will be the changes in the same. If possible brief info on High Sea Sale, I am schedule to attend an interview tomorrow for Imports and i am just jumbled up on what I know & Don't know. If you have any questioner on Import please send that also.

shah: On 25 April 2017 what will be the status of stock on hand(VAT PAID).?If GST is 18% & we are holdiong stock of 6% Vat paidmaterial?

Chandrashekhar Patil: On 05 May 2017 I am import betel nuts from Srilanka & our bussiness place in maharashtra ,goods Delevery taken from port after paid Customs duty & Other process. after paid customs duty which tax is payable by me if it is IGST OR SGST +CGST ,because import purchase treated as interstate purchase.please clarify?

SUMIT: On 06 May 2017 hi I am importing weaving machine from china this month. my payment will be be made in advance, and the machine will land in india by june 2nd week. I wanted guidance weather to wait for more 15 days so that machine lands in july 1st week and it can come under GST?? kindly suggest

Bhupen: On 23 May 2017 I am not able to understand how and when we will get credit of Import duty. I am serarching in excel format.

NAMASIVAYEM: On 02 June 2017 so according to your writing for imports IGST, CGST and SGST will be levied. If we sell the imported goods to another state, we can claim on CGST, if we its sold withing the state we can claim SGST right?

Vivek: On 07 June 2017 Hi, I am based in India, I buy seeds from china(small small quantity Buying price 50 Cents only per order Approx ) and sale worldwide by eCommerce website Please tell what I need to pay as Import or GST Thanks

Balachandran M : On 11 June 2017 , a Customs Empanelled Chartered Engineer and also a technical consultant for M/s Mayuri Associates, a reputed CHA enterprise in Hyderabad & Nagpur. I read with keen interest, your recent message of imports - duty payments under GST regime. Still some vary basic doubts linger in my mind. None at Hyderabad are able to give me a proper clarification. I felt that I can approach you, and get an answer by return email. The critical questions is: There are certain CUSTOMS tariff notifications, wherein the whole of the duty is exempted and a single lower rate of basic customs is leviable. The clear example is customs notification no. 51/96-Customs which is for R & D exemptions. If you could have a look at this notification, the CVD is also exempted. I understand that under GST regime, the CVD exemptions will not be extended. It is in this area, all are reluctant to give me a clear cut advice. How to calculate the total duty payable under this notification, under GST Regime? Can you kindly provide me a clear model calculation, so that myself and my assistants can understand the process.

Nilesh: On 13 June 2017 Hello We are importing instruments from SWEDEN under chapter 90.31 so can you please clarify at the the time of import what would be the duty structure and what benefit can we get or we can pass on to the customer.

SriDevi: On 21 June 2017 Sir, How we may collect the pending Special Additional Duty amount from Customs after implementing GST?

Umang Grover: On 21 June 2017 I love this article

Rohit: On 26 June 2017 Please clarify anyone, if I Import sports product @ Rs.100/- what will be the landing cost.

Jitendra jain: On 01 July 2017 DUTY STRUCTURE ON DTA UNIT-HOW TO CALCULATE BCD DUTY ,CESS,IGST

SAGAR FREIGHT CARRIERS: On 04 July 2017 WHO IS MAJOR RESPONSIBLE TOPAY GST FOR TRANSPORT in commercial goods

Sahil Goel: On 04 July 2017 I import power tools from china and had some things to clarify There will be basic custom duty (BCD) and IGST and no other CESS (HIGHER EDUCATION CESS and others) or Additional Duty Plz find time and reply back to us through mail

Reena: On 05 July 2017 Hello Sir/Madam, I am going to import some beauty product and wall stickers from China,just wanted to know that what would be the Basic custom duty on my product and what other charges(duty) will be there after custom duty. (If I import through courier company like Fed ex or DHL by AIR). Kind regards, Reena

MAYANK GUPTA: On 06 July 2017 Dear Sir, I import protein supplement for my personal use from UK. My state of import is Delhi. Earlier i Was paying 46% duty on import which used to break down as following: Import duty rate = 30% Landing Charges rate = 1% Countervailing Duty rate = 8.125% on retail price CESS rate = 3% Additional Countervailing Duty rate = 4% CEX (Education & Higher Education CESS) rate = 0%. Total import duties & taxes = 46%. I want to know how much will the duties cost under GST.

Sachin Bhatla : On 17 July 2017 Does ship supervision of the maintenance service fall under exemption list of GST? What is Goods and Service Tax slab rate survey and repair service of ship? GST expenses for engagement or providing of crews in ship service? Is GST chargeable for freight charges service on behalf of the owner of ship? GST tax slab rate for providing for victualling or storing of ship?

Mayank Gupta : On 18 July 2017 I have a small query regarding GST import duty on protein supplements for personal use. Earlier, I used to import protein supplement from UK and used to pay a duty of 46% on the price of the protein, under the following breakdown: Customs Charges Breakdown Total import duties & taxes = 46%. Import duty rate = 30% Landing Charges rate = 1% Countervailing Duty rate = 8.125% on retail price CESS rate = 3% additional Countervailing Duty rate = 4% CEX (Education & Higher Education CESS) rate = 0%. I want to know how much Import duties and taxes will I be paying under GST. I'll be really grateful if you could provide a clarification on the same.

Ravinder Reddy: On 20 July 2017 Hi, We are under EOU, as per GST now there is no procurements and CT-3's required for imports. So what procedure we have to follow for duty exemption of imports And what is the procedure for export without payment of duty. Please clarify.....

MANOJ SHARMA: On 20 July 2017 Hi, can we taken input on additional duty in custom duty on import purchase. If we can take input which value credit taken on custom duty.

Pritesh Patel: On 28 July 2017 Can I use input tax credit for imported textile machinery?

SRI LAKSHMI DRILLS: On 19 August 2017 hello , Now for importing & exporting {I&E.CODE} is necessary or not ?

ARVIND LANDE: On 29 August 2017 Hi, I am importing 2 Nos cutting machine from china in the month July.17 & payment will be be made in advance in June,17 to the supplier, The machine has been land in india in july 3nd week. Custome duty has been paid on 11th July,17, Date of Bill of entry is 28/6/2017, Out of 2 machine, We will use 1 machine for production & 1 machine will Re-sale to the customer Can we take ITC credit of CVD & Aditional Duty under GST ? Please guide immediately. Arvind Lande Mobile 7769071994

afther pervez : On 14 March 2018 We export fresh fruits and vegetables to UAE by Air. I want to Know is their any GST applicable for Air Logistics on AWB ..

PARESHKUMAR PATEL : On 14 March 2018 i want to know the custom or excise or gst rates to import hms or iron scrap from dubai to mundra port.

GST on Imports in India

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