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.
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