Important things to know about GST for custom duty

With the implementation of GST, the Indian Custom Duty is now being calculated in different way altogether. Here every business organisation should remain aware about this calculation before they start dealing. There are lots of things that should be taking into consideration for understanding what will be the GST for your case.


know about GST for custom duty

Every business organisation should know how the Indian Custom Data is getting affected with the implementation of GST. The previous calculations for Custom Duties have been abolished and now the duty is calculated as per the rules mentioned in the IGST. On the basis of calculation of IGST, it provides for levying and collection of duty.

One should know the types of custom duties application at present. Mainly there are two types of custom duties, one is import duty and another is export duty. The import duty includes the followings

·         Basic custom duty or BCD
·         Integrated Goods and Services Tax or IGST
·         Compensation Cess

Now, it is also necessary to know different types of custom duties applicable for importing of goods.  The first one is basic custom duty and a specific charge is included here. IGST is charged on the goods and service which are imported by Indian companies.

For importing of goods, compensation cess is also levied on the goods imported to India. This cess is collected on the goods which are supplied inter or intra state.  Additional import duty such as safeguard duty and anti-dumping duty is also levied on the goods brought within Indian Territory.

Based on Indian Government Notification, IGST rate divided into:

·         5% on Goods Specified into Schedule I
·         12% on Goods Specified into Schedule II
·         18% on Goods Specified into Schedule III
·         28% on Goods Specified into Schedule IV
·         3% on Goods Specified into Schedule V
·         0.25% on Goods Specified into Schedule VI

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