What Are The Changes That Impact Import Duty After GST?

India holds the 7th place as one of the largest growing economies in the whole world. Trade is the most important factor that leads to the growth of this country. Thus, it is crucial to keep an eye on the trade routine in both domestic and international markets. With the implementation and introduction of GST (Goods & Services Tax) launched on 1st July 2017, there has been a change in the method of business in India.

Import Duty After GST

Goods & Services Tax has an important impact on the foreign trade of the products through the changes in the structure of taxation. In today’s blog, we’ll discuss the impact of Import Duty After GST in India.

In the previous tax system, imports of the commodities were subject to different import duties including countervailing duties of excise and customs duty.

Now, after the reformed tax structure has been introduced, IGST has replaced all the indirect taxes that were previously levied on import of services and goods.

An overview of IGST

IGST stands on Integrated Goods & Services Tax. According to section 11 of the IGST Act, if an importer says that he/she is located in Maharashtra, the state tax component of the integrated tax shall add to the Maharashtra state.

The import services in GST are taxable if it meets the following conditions:

·         Supplier of the service is situated outside India.
·         Recipient of the service is located in India.
·         Location of supply is in India.
·         The supplier and recipient of service are not establishments of a distinct person.

Look at the Current Situation of Import Duty After GST

 All the taxes which are paid during the import is now present in the form of credit in the new law “import and sale” model that was not present in the pre-GST routine.

·    The government of India might change the custom role and international trade policy with different kinds of notifications for exemptions like MEIS, duty drawback, EPCG, advanced authorization in order to support the GST.

       CVD was previously accused on the estimate of MRP principle. But, now IGST will involve CVD and it will be charged on transaction value in the GST routine.

No comments:

Post a Comment