Few Impacts on Custom Import Duty After GST

First of all, customs import duty is a certain kind of indirect tax that is charged on commodities which are imported into and exported from India. But, now things have changed. As we all aware, GST (Goods & Services Tax) is a new tax system in India that was launched at midnight on 1^st July 2017.

Undoubtedly, India is the fastest growing global economy and also on the way to becoming the all-new global industrial hub. In my all previous blogs, we have discussedthe benefits of the export-import database. But now continuing my agenda, we are extending our discussion on Custom Import Duty after GST. According to the GST law, goods and services tax will include CVD (Countervailing Duty) and SAD (Special Additional Duty); however, BCD (Basic Customs Duty) will continue to make its round in the import bills.

Have a Look at the Impacts on Custom Import Duty After GST!

ü  Import as the Inter-State Supply- Imports in overall India will be referred as inter-state supply and therefore it will attract the IGST (Integrated Goods & Services Tax) with BCD and other surcharges.

ü  Imports of the Services- Obligation of the expense of tax on the service receiver, services are offered by an individual who is residing outside India. It is similar to the current provision of the reverse charge, wherein the service receiver is vital to file returns and pay tax.

ü  Transaction Value- Earlier CVD was charged on the MRP valuation principle. According to the new regime, IGST contains CVD and will be accused on the transaction value.

ü  Refund of Duty- Under the all-new command, the tax which is paid throughout the import will be present as a credit under the “Import & Sale” model.

If you’re still confused about impacts on Custom Import Duty After GST, it is recommended to take professional assistance. A lot of sources available online that will help you understand the entire GST regime.