Monday, 1 January 2018

GST Yathra- 13- IGST on Imports

Import of Goods:

As per Section 5(already discussed in GST Yathra -10) of the IGST Act, imported goods shall be deemed to be an inter-state supply.
IGST shall be levied on the value as determined under Customs Tariff Act, 1975.
Point of levy of IGST shall be point of  levy of customs duty under the Customs Act, 1962.
The rate of IGST shall be a rate of IGST leviable on supply of similar article in India.
It shall be levied in addition to Basic Customs Duty.

Assessable value = 10
BCD=10%
IGST=20%
Then,
BCD=1
AV+BCD= 11
IGST= 11 x 20% = 2.2

Import of Services
The following three conditions have to be satisfied for a supply of service in order to qualify as Import of service

a.       Supplier of service should be located outside India
b.      Recipient of service should be in India
c.       The place of service should be in India.
The place of supply shall be determined as per Section 13 of the IGST Act.

Impact of consideration and business connection  on the supply of service
As discussed earlier (GST Yathra -2),
If the import of service is for consideration, it is not necessary the supply should be for business purpose in order to qualify as supply.

If the supply of service is from a related or distinct person as defined in Section 25 of the CGST  Act, it is not necessary that the supply should be for consideration in order to qualify as supply.

No comments:

Post a Comment