GST on imports to be charged at the time of importation of goods

igst on imports

04.08.2017: GST Council has clarified that IGST (Integrated Goods and Service Tax) will not be levied at the time of making high seas sales agreement, but the same will be levied at the time of importing the goods at the custom-house.  This will be a great relief to the oil and gas, power, and telecom companies.  It has also clarified that IGST will be charged only once during the entire process.

In this regard, the Central Board of Excise  & customs issued a circular on 1st August 2017 under circular number 33/2017(Click to Download here..).   This clarification has put an end to the confusion that arose during the GST transition.

High seas sales are a common practice where buyer and seller come together and sign a contract called “High seas sales Agreement”.  This contract contains who is an importer and who will be clearing the material after arriving at it in the customs.   This contract facilitates the buyer to receive the goods directly from customs without going to the seller’s place.   The said agreement must be signed and filled in the customs after leaving the goods from exporting country and before arriving the goods in the customs, which means it has to be submitted when the shipment is in transit.

Tax on Import of services under GST

The Import of services into India is taxable by the central government through the reverse charge method.  In relation to any taxable service provided by any person who is located in a non-taxable territory (Outside India) and received by any person located in the taxable territory i.e India, other than J&K, service tax shall be payable by the recipient of such service.

Please see the concept of Import of services from a related person from here. 

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how will imports be taxed under gst?

In the pre-GST regime, customs duty and cess as applicable are charged on imported goods. Whereas under the GST system the IGST & GST compensation Ces will be charged additionally on imports. more

Import of Services in GST

As per the IGST section, 2(11) supply of any service shall be treated as “ Import of services under GST. more

What is IGST under GST?

The full form of IGST is “Integrated Goods and Services Tax”. It means the tax is levied under the IGST Act on the supply of any goods and/ or services in the course of inter-State trade or commerce. more

GST updates on Imports

Check out our home page for the latest updates on imports under GST. You may also subscribe to our newsletters to receive the latest updates in your mailbox. more

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