Vol. 13 Issue 4.

1 April 04, 2017

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GST and interlinkage with Customs Share

IGST will be applicable at the time of import as duty of customs Connect

IGST on imported goods would be levied and collected as per Section 3(7) of
Customs Tariff Act, 1975 (Tariff Act) on value determined under the Tariff Act, at the
point when customs duties are levied under the provisions of customs law.

IGST would be payable on transaction value plus basic customs duty (and any other
charge payable).

GST Compensation Cess applicable on imported goods as duty of customs

GST Compensation Cess (GST Cess) would be levied and collected under Section GST Rules, FAQs and Taxation Laws
3(9) of the Tariff Act. (Amendment) Bill, 2017

GST Cess would be payable on transaction value plus basic customs duty (and any Draft Input Tax Credit Rules
other charge payable); IGST would not be included for computing cess amount.
Draft Valuation Rules
Places of supply of import / export goods

Draft Transition Rules

For goods imported into India, the place of supply shall be the location of the
importer; the place of supply for export goods shall be the location outside India.
Draft Composition Rules
Import / export is Inter-state supply
Revised GST Rules
Supply of goods imported into India, till they cross customs frontier, shall be treated
as inter-state supply; similarly, goods being exported outside India would be treated The Taxation Laws Amendment Bill

as an inter-state supply, being treated as zero rated supply.

GST Revised FAQ 31.03.2017
Provisions of the customs law would equally apply to IGST and GST Cess

Customs law provisions including drawback, exemptions would equally apply to IGST
and GST Cess as well.
Indias Economic Performance and
Bill of entry will continue to be the valid document for taking credit of IGST and GST Business Imperatives: Foundation for a
Cess paid on imported goods; credit of GST Cess credit can only be utilised for Paradigm Shift: Budget 2017-18, GST &
payment of GST Cess on the revenue side Digitisation
Customs bonded warehouse included within the definition of customs station; hence, BMR Advisors Webinar on the Finer
imported goods stored in the warehouse will continue to be eligible for duty nuances of Transfer Pricing Budget 2017
deferment till clearance of the goods from such warehouse. Amendments - Secondary Adjustments

Details of IGST paid on imported goods to be reported in monthly GST return.

BMR Advisors Webinar on #budget2017

BMR Advisors Analysis of proposals of

Indian Union Budget 2017
BMR Comments
EBG & BMR Advisors Webinar: Impact of
The amendment to the Tariff Act brings clarity on form and method of GST on businesses in India
computation of IGST and GST Cess as well as time of payment of IGST/ GST
Cess; consequently, the bill of entry will be the duty payment document for
GST: Is India Inc Ready?
claiming credit of IGST/ GST Cess.

Details around timing of disclosure of IGST and GST Cess in the GST returns GST: Are states ready?
and timing of availability of credit for utilisation purposes need to be watched out
for.
Sectorial analysis of the Model GST Law
Another important aspect that needs to be tracked is status of customs duty
exemptions (including benefits provided under Foreign Trade Policy) from Draft Model GST Law - A BMR Phone
payment of IGST and GST Cess at the time of import of goods; withdrawal of Conference
customs duty exemptions will have a direct impact on cash flow of the importers.
Clarity may emerge on this aspect only in due course, once GST Council has A BMR Webinar on India Mauritius Tax
cleared the duty rates for goods and policy framework on exemptions is made Treaty Amendment
clearer in public domain.
CNBC TV-18 & BMR Advisors CEO Poll
on 2 Years of Modi Government

Indias Economic Performance and

Business imperatives: Making India
Business Friendly

Managing Tax Disputes in India

2017:

Tier 1 firm in International Tax Review,

World Tax 2017 Guide to Worlds
Leading Tax Firms for the tenth
consecutive year

Tier 2 in International Tax Review,

World Transfer Pricing 2016 Guide

2016:

Tier 1 firm in International Tax Review,

World Tax 2016 Guide to Worlds
Leading Tax Firms for the ninth
consecutive year
 Tier 2 firm in International Tax Review,
World Transfer Pricing 2016 Guide

2015:

Tier 1 firm in International

TaxReview,World Tax 2015 Guide to
Worlds Leading Tax Firms for the
eighth consecutive year

Tier 2 firm in International Tax Review,

World Transfer Pricing 2015 Guide

Ranked No.1 & No.8 (by deal count)

Most Active Transaction Advisor for
M&A and PE deals by Venture
Intelligence

Himanshu Tiwari

Parag Chavan

Rajeev Dimri, Gurgaon

+91 124 669 5050
rajeev.dimri@bmradvisors.com

HimanshuTewari, Mumbai
+91 22 6135 7099
himanshu.tewari@bmradvisors.com

Kaustuv Sen, Mumbai

+91 22 6135 7042
kaustuv.sen@bmradvisors.com

Mahesh Jaising, Bengaluru

+91 80 4032 0140
mahesh.jaising@bmradvisors.com

Amit Jain, Pune

+91 20 668 19010
amit.jain@bmradvisors.com
 BMR Business Solutions Pvt. Ltd.
36B, Dr. RK Shirodkar Marg, Parel, Mumbai 400012, India
Tel: +91 22 6135 7000 | Fax: +91 22 6135 7070

BMR and Community

BMR has a strong commitment to good citizenship and community service. We are as dedicated to community work as we are to client
work. Wherever appropriate we partner with our clients in fulfilling our social responsibility. Through the firms Go Green Initiative we
adopt environment friendly practices at our work place. The firm actively supports SOS Childrens Village, Indian Red Cross Society and
MillionTrees Gurgaon campaign. For more details on our social and environmental responsibility programme, click here.

Disclaimer:
This newsletter has been prepared for clients and Firm personnel only. It provides general information and guidance as on date of
preparation and does not express views or expert opinions of BMR Advisors. The newsletter is meant for general guidance and no
responsibility for loss arising to any person acting or refraining from acting as a result of any material contained in this newsletter will be
accepted by BMR Advisors. It is recommended that professional advice be sought based on the specific facts and circumstances. This
newsletter does not substitute the need to refer to the original pronouncements.

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