ALL >> Business >> View Article
Is Gst Applicable On Imported Goods?
Under the GST regime, both the import of goods and or services into the territory of India would be treated as supply of goods or services in the course of inter-state trade attracting the levy of IGST. So import of goods or services will be treated as deemed inter-state supplies and would be subject to GST. In this article, we look at the applicability of GST on goods imported into India.
GST on Import of Goods
The GST Act has defined import of goods as bringing goods into India from abroad. Accordingly, all imports into India will be deemed as inter-state attracting IGST. In addition to the IGST, the import would also be subject to Customs Duties. Thus, when goods are imported into India, IGST would be applied on the value of the goods and collected along with Customs Duty. The Customs Tariff Act, 1975 has already been amended to provide for levy of integrated tax and the compensation cess on imported goods, in anticipation of the GST rollout.
While, GST would be applied to imports in addition to the Basic Customs Duty, GST Compensation Cess can also be levied on certain luxury and demerit goods under ...
... the Goods and Services Tax (Compensation to States) Cess Act, 2017.
You might know GST Return Online Software.
Amount of GST on Imported Goods
HSN (Harmonised System of Nomenclature) code has been used for the purpose of classification of goods under the GST regime. Hence, the classification of the item for Customs Duty purpose and IGST calculation purpose would be harmonised.
The amount of GST payable on imported goods would be dependent on the assessable value plus customs duty levied under the Customs Act, and any other duty chargeable on the goods. The value of the imported article for the purpose of levying GST Compensation cess would be, assessable value plus Basic Customs Duty levied under the Act, and any sum chargeable on the goods in the same manner as a duty of customs. Thus, the IGST paid would not be added to the value for the purpose of calculating GST Compensation cess.
Calculating GST on Imports
If the assessable value of goods imported into India is Rs. 100/-.
Basic Customs Duty is 10% ad-valorem.
Integrated tax rate is 18%.
Then IGST tax payable would be calculated as:
Assessable Value= Rs. 100/-
Basic Customs Duty (BCD) = Rs. 10/-
Value for the purpose of levying IGST = Rs. 110/-
GST – Integrated Tax = 18% of Rs.110/- = Rs. 19.80
Total Taxes = Rs. 29.80
If the goods are luxury products and GST Compensation Cess is also applicable, then GST Compensation Cess would be levied on Rs. 110/-, as Compensation Cess is not levied IGST.
Paying GST for Imports
Under The Customs Act, 1962, removal of goods from a customs station can be done only after payment of Customs Duty and the Integrated GST tax payable. Thus, the importer would be required to pay the Integrated tax at the time of removal of goods from a customs station to a warehouse.
Add Comment
Business Articles
1. Finding A Trusted Sustainability Consultant In Abu DhabiAuthor: Agile Advisors
2. Iso Certification In Dubai – Advantages For Business
Author: Agile Advisors
3. Best Forex Brokers List | Best Broker For Forex Trading 2024
Author: Top Forex Brokers Review
4. Celebrate Achievements With Customized, High-quality Awards From Trophy Deals
Author: Trophy Deals
5. Is 100% Company Ownership Possible For Expats In Saudi Arabia?
Author: jodonjo
6. We Are Hiring: Senior Executive - Indirect Taxation In Gurgaon!
Author: tanvir Khan
7. Ceratec Tower 1o8: The Eventual Fate Of Business Greatness In Balewadi, Pune
Author: Tarun
8. Enrofloxacin Manufacturer: Swisschemie
Author: Swisschemie
9. Ultimate Guide To Hotels In Mussoorie: Discover The Best Places To Stay, Including Hr Hotels And Resorts
Author: Hr Hotels and Resort
10. How Quickly Do Fast Cash Loans Online Pay Out Cash On The Same Day?
Author: Lucy Lloyd
11. Leading Digital Marketing Agency In Hyderabad And Unlock Your Brand’s Potential With Sanbrains Agency
Author: Sanbrains Seo
12. Celebrate Success With Customized Awards From Trophy Deals
Author: Trophy Deals
13. Title: Choosing The Right Humidity Stability Chamber Supplier For Your Manufacturing Needs
Author: bio gene
14. Complete Guide To Studying Mbbs In Poland
Author: Mbbs Blog
15. What Is The Process For Locating The Best Lender For Short Term Loans Online?
Author: Robert Miller