This document provides an overview of import duty calculation in India. It discusses the key components of import duty - Basic Customs Duty (BCD), Social Welfare Surcharge (SWS), Integrated Goods and Services Tax (IGST), and Compensation Cess. It also outlines various exemptions and reductions available, such as Special Economic Zones, Bonded Warehouses, and Free Trade Agreements. Government websites and tools for researching applicable import duties are also referenced.
#New Scheme of Export Incentive RoDTEP - By SN Panigrahi & CA Rishabh Sawansu...SN Panigrahi, PMP
#New Scheme of Export Incentive RoDTEP - By SN Panigrahi & CA Rishabh Sawansukha (Jain),
Certain Taxes / Duties / Levies Not Being Refunded @ Present,
MEIS, RoSCTL, RoDTEP
#New ‘Rules of Origin' to Check Misuse of FTA Provisions - By SN PanigrahiSN Panigrahi, PMP
#New ‘Rules of Origin' to Check Misuse of FTA Provisions - By SN Panigrahi,
Essepee Business Solutions,
‘Rules of Origin',
Preferential Rate of Customs Duties,
Free Trade Agreements,
'Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020',
Purpose of ‘Rules of Origin',
India Free Trade Agreements,
Flouting of ‘Rules of Origin’.
South Asian Free Trade Area (SAFTA),
CAROTAR, 2020,
Notification No. 81/2020-Customs (N.T.) dated 21st August 2020,
Filling of Bill of Entry,
Preferential Tariff Claim,
Goods Wholly Obtained (WO),
Change in Tariff Classification (CTC) Method,
Process Rule Method,
General Rule vs Product Specific Rule (PSR),
Certificate of Origin,
Foreign trade policy India chapter 2 general provision regarding export and ...DEEPAK PANT
Foreign trade policy India 2015-2020 chapter 2 general provision regarding export and import ..The general provisions governing import and export of
goods and services are dealt with in this chapter .
ELP- Interplay of Customs Law & FTP with GSTelroybo
The intricacies of doing business in the export market, in light of the provisions of GST laws, the amendments to the Customs Act and the mid-term review of Foreign Trade Policy 2015-2020.
#New Scheme of Export Incentive RoDTEP - By SN Panigrahi & CA Rishabh Sawansu...SN Panigrahi, PMP
#New Scheme of Export Incentive RoDTEP - By SN Panigrahi & CA Rishabh Sawansukha (Jain),
Certain Taxes / Duties / Levies Not Being Refunded @ Present,
MEIS, RoSCTL, RoDTEP
#New ‘Rules of Origin' to Check Misuse of FTA Provisions - By SN PanigrahiSN Panigrahi, PMP
#New ‘Rules of Origin' to Check Misuse of FTA Provisions - By SN Panigrahi,
Essepee Business Solutions,
‘Rules of Origin',
Preferential Rate of Customs Duties,
Free Trade Agreements,
'Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020',
Purpose of ‘Rules of Origin',
India Free Trade Agreements,
Flouting of ‘Rules of Origin’.
South Asian Free Trade Area (SAFTA),
CAROTAR, 2020,
Notification No. 81/2020-Customs (N.T.) dated 21st August 2020,
Filling of Bill of Entry,
Preferential Tariff Claim,
Goods Wholly Obtained (WO),
Change in Tariff Classification (CTC) Method,
Process Rule Method,
General Rule vs Product Specific Rule (PSR),
Certificate of Origin,
Foreign trade policy India chapter 2 general provision regarding export and ...DEEPAK PANT
Foreign trade policy India 2015-2020 chapter 2 general provision regarding export and import ..The general provisions governing import and export of
goods and services are dealt with in this chapter .
ELP- Interplay of Customs Law & FTP with GSTelroybo
The intricacies of doing business in the export market, in light of the provisions of GST laws, the amendments to the Customs Act and the mid-term review of Foreign Trade Policy 2015-2020.
If you want to know about India's Foreign Trade Policy this PPT may help you to get some glance. The PPT contains India's trade policy 2015-2020 along with few agreements sign by India. Moreover, efforts made by government to maintain these policy are also given. As agriculture is main occupation in our nation few policy related to it are also mention. However this PPT was made before the new policy of 2021 therefore it does not consist about new policy.
Insight on Manufacturing Bonded Warehouse Scheme under Customs ActDVSResearchFoundatio
Key Takeaways:
Make in india
Hybrid of Bonded Warehousing and Local Manufacturing
Deferred Customs Duty on import of raw materials
Alternative for SEZ/EOU
Ease of doing Business in india
Composition levy GST ( Composition Scheme GST )CA-Amit
Only taxable persons whose ‘aggregate turnover’ does not exceed Rs. 50 lacs in a financial year will be eligible to opt for payment of tax under the composition scheme.As per Section 16, Goods and/or services on which composition tax has been paid under Section 8 is not eligible for input tax credit.
The following Presentation enumerates the various provisions w.r.t. ITC, how it can be used,eligibilty and conditions for claiming ITC along with various case studies and illustrations. further, it elaborates the concept of input service distributor.
New Export Promotion Scheme RoDTEP : Implemented without Rates Announced - By...SN Panigrahi, PMP
New Export Promotion Scheme RoDTEP : Implemented without Rates Announced - By SN Panigrahi
#ExportPromotionSchemes
#MEIS -Exit
#EXPORT
#ExportBenefits
#EssAnnPee Business Solutions
#RatesRoDTEP
If you want to know about India's Foreign Trade Policy this PPT may help you to get some glance. The PPT contains India's trade policy 2015-2020 along with few agreements sign by India. Moreover, efforts made by government to maintain these policy are also given. As agriculture is main occupation in our nation few policy related to it are also mention. However this PPT was made before the new policy of 2021 therefore it does not consist about new policy.
Insight on Manufacturing Bonded Warehouse Scheme under Customs ActDVSResearchFoundatio
Key Takeaways:
Make in india
Hybrid of Bonded Warehousing and Local Manufacturing
Deferred Customs Duty on import of raw materials
Alternative for SEZ/EOU
Ease of doing Business in india
Composition levy GST ( Composition Scheme GST )CA-Amit
Only taxable persons whose ‘aggregate turnover’ does not exceed Rs. 50 lacs in a financial year will be eligible to opt for payment of tax under the composition scheme.As per Section 16, Goods and/or services on which composition tax has been paid under Section 8 is not eligible for input tax credit.
The following Presentation enumerates the various provisions w.r.t. ITC, how it can be used,eligibilty and conditions for claiming ITC along with various case studies and illustrations. further, it elaborates the concept of input service distributor.
New Export Promotion Scheme RoDTEP : Implemented without Rates Announced - By...SN Panigrahi, PMP
New Export Promotion Scheme RoDTEP : Implemented without Rates Announced - By SN Panigrahi
#ExportPromotionSchemes
#MEIS -Exit
#EXPORT
#ExportBenefits
#EssAnnPee Business Solutions
#RatesRoDTEP
GST is expected to play a key role in bringing about more transparency into the tax system. The GST as a new levy could be a very effective tool and breakthrough in indirect tax reforms, provided it is made simple and assessee-friendly – not like the present tax system. A very strong infrastructure network would be required to administer GST which would include facility for online payment of tax and e-filing of returns.
Therefore, it is very important for importers and exporters to completely dive into the concept of customs duties applied to their goods and know how to work on customs solution(s).
Business Environment and Value-Based Management is an educational PowerPoint presentation designed to teach students and professionals about how businesses operate and how they can be managed more effectively. It explains various factors that influence businesses, such as money, laws, and technology, in simple terms that are easy to understand. The presentation also introduces the concept of Value-Based Management, which focuses on making decisions that add value to a company. Through real-life examples and practical advice, learners gain insights into setting goals, making smart choices, and measuring success in the business world. This presentation serves as a valuable educational resource for anyone looking to improve their understanding of business management principles and practices.
Key Takeaways:
Export Promotion Schemes in India
Analysis of WTO' Ruling
Schemes adopted by Member Nations
Alternatives to Export Promotion Schemes
Way forward
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
Honest Reviews of Tim Han LMA Course Program.pptxtimhan337
Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
Normal Labour/ Stages of Labour/ Mechanism of LabourWasim Ak
Normal labor is also termed spontaneous labor, defined as the natural physiological process through which the fetus, placenta, and membranes are expelled from the uterus through the birth canal at term (37 to 42 weeks
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
1. Calculation of Import Duty in India — Formula, Online Tools and Exemptions
India’s economic growth and rising domestic consumption has spurred import of finished
goods, and inputs in the form of raw material, consumables and capital goods. But how are
these imports taxed by the Customs authority of India? This article provides a simple
explanation of the calculation of import duties and provides linkages to government websites
and tools that can be leveraged for detailed research.
The Customs Act of 1962 governs import (and export) tariffs and sets the rules for customs
valuation. India's tariff system is based on the Harmonised System of Nomenclature (HSN)
of the Customs Co-operation Council.
The sample calculation for identifying import duties on equipment, raw material and other
inputs is displayed in Figure I. The calculation has four variable values, where the rate of tax
depends upon the HSN Codes of the products. These four variables are:
Table 1
i. Basic Customs Duty (BCD): This is the tax that is calculated on the Assessment Value of
the goods that have landed at the customs border of India. It can vary between 0% to 100%.
BCD depends upon the HSN code of the product and the Country of Import.
BCD for HSN codes is revised from time-to-time and revised duties are published as
Notifications on the website of Central Board of Indirect Taxes and Customs (CBIC —
www.cbic.gov.in/Customs-Notifications) within the Ministry of Finance's Department of
Revenue.
Several central ministries such as Ministry of Electronics & Information Technology and
Department of Heavy Industries have announced Phase Manufacturing Programs (PMPs) to
encourage higher value addition in segments of Smartphone (meity.gov.in/content/phased-
manufacturing-programme) and Electric Vehicle (EV PMP), respectively. These PMPs have
proposed a calendar of increasing BCD on components in a phased manner.
Indian Customs Electronic Gateway (ICEGATE) is the national portal of CBIC that provides
e-filing services to the trade, cargo carriers and other trading partners electronically. It also
2. hosts a Custom Duty Calculator* that can be used to identify applicable BCD on imported
goods.
India Trade Portal is portal developed and maintained by the Federation of Indian Export
Organisations (FIEO), Ministry of Commerce & Industry. The portal can be leveraged to
identify BCD rates as per arrangements under Most-Favoured Nation (MFN), Free Trade
Agreements (FTAs) and Preferential Trade Agreements (PTAs).
India has signed several FTAs and PTAs with countries in East Asia (Japan, Korea, Malaysia,
Thailand, Singapore) and ASEAN Bloc, among others. Details of these agreement can be
accessed at this Link on website of Ministry of Commerce & Industry
* Please note that the tool at times may not reflect the recent changes in BCD and hence, we
advise you to always check Customs Notifications at CBIC website to access the latest
information.
Table 2
ii. Social Welfare Surcharge (SWS): It is a tax imposed on the value of goods including the
BCD value. It is generally 10% unless the good is exempted from this tax.
iii. Integrated Goods & Services Tax (IGST): Introduced on 1 July 2017, GST subsumed
most indirect taxes such as excise duties and a special additional customs duty that was
applied previously. A concept note on GST can be accessed at this Link on website of GST
Council. IGST is imposed on the imported goods to provide a level playing field for domestic
manufacturers, who also pay an equivalent tax (Central GST + State GST or IGST) on sale of
goods. IGST on imported goods can be set-off against any other GST liability in India. There
are five slabs of IGST 0%, 5%, 12%, 18%, 28%.
iv. Compensation Cess: This is an additional tax that is imposed along with GST on both
imported items as well as domestically manufactured items on products that are classified as
notified E.g. Special Utility Vehicles, Cigarettes, Tobacco, Aerated Water, etc.
At times to discourage import of certain finished goods or input materials that are available in
large quantities, Government of India imposes Anti-dumping duties or Safeguard duties over
and above the four taxes mentioned above.
3. There are five mechanisms that can be used to reduce the applicable BCD. Exemption or
waiver of IGST is not permitted as per law:
Special Economic Zone: Units operating in SEZ are exempted from BCD and IGST on
Capital Goods, Raw Material and other Fixtures. If these units, do any sales in the domestic
market of India then they pay applicable BCD + IGST on the product or service.
Bonded Warehouses: Bonded Warehouse can be used for storage of goods as well as for
manufacturing as elucidated in Circular 38/2018 dated 18 October 2018. Unitholders can
defer BCD on imported Capital Goods, Raw Material and other Fixtures. This duty can be
deferred until clearance in the domestic tariff area and can be exempted if the products are
exported/re-exported. There is no time limit for duty deferment. More on this concept at this
Link.
Free Trade Warehousing Zone: Governed by SEZ Act 2005 and SEZ Rules. Predominately
for EXIM trade & storage. Duty deferment permitted on imported goods and also permits
trade transactions in foreign currency.
Foreign Trade Policy 2015-20: Import policy is published by Directorate General of Foreign
Trade (DGFT), Ministry of Commerce & Industry. Foreign Trade Policy schemes that can
help reduce BCD liability are:
Project Import Scheme: Relaxes duties for import of specific capital goods
Advanced Authorization Scheme: Exempts duties for import of inputs for export
consignments
Export Promotion Capital Goods (EPCG): Allows import of capital goods including spares
for pre-production, production and post-production at zero duty subject to an export
obligation of 6 times of duty saved, to be fulfilled in 6 years from authorization issue date.
Sectoral Incentive Schemes: Central Government may announce exemption from BCD for
specific types of machinery to encourage manufacturing or modernization in certain sectors.
E.g. Government of India reduced BCD on 35 capital goods that are used for manufacturing
mobile phone components such as a lithium-ion battery, speaker and receiver of mobile
phones, data cables, optical fibre etc.
Free Trade Agreements & Other Preferential Treaties: Most Favoured Nation (MFN) or
arrangements under FTA /PTA can help reduced BCD rates. A thorough check should be
conducted in Customs Notifications at CBIC or through India Trade Portal to identify such
benefits.
Invest India’s sectoral experts can help you evaluated the impact of import duties on your
business model in India. They can also help you interpret the level of value addition that is
required to manufacture goods in India from an import duty perspective or whether the
products can be imported in finished form / Semi-Knocked Down (SKD) form or Completely
Knocked Down (CKD) form.
Calculation of Import Duty in India — Formula, Online Tools and Exemptions
India’s economic growth and rising domestic consumption has spurred import of finished
goods, and inputs in the form of raw material, consumables and capital goods. But how are
these imports taxed by the Customs authority of India? This article provides a simple
explanation of the calculation of import duties and provides linkages to government websites
and tools that can be leveraged for detailed research.
4. The Customs Act of 1962 governs import (and export) tariffs and sets the rules for customs
valuation. India's tariff system is based on the Harmonised System of Nomenclature (HSN)
of the Customs Co-operation Council.
The sample calculation for identifying import duties on equipment, raw material and other
inputs is displayed in Figure I. The calculation has four variable values, where the rate of tax
depends upon the HSN Codes of the products. These four variables are:
Table 1
i. Basic Customs Duty (BCD): This is the tax that is calculated on the Assessment Value of
the goods that have landed at the customs border of India. It can vary between 0% to 100%.
BCD depends upon the HSN code of the product and the Country of Import.
BCD for HSN codes is revised from time-to-time and revised duties are published as
Notifications on the website of Central Board of Indirect Taxes and Customs (CBIC —
www.cbic.gov.in/Customs-Notifications) within the Ministry of Finance's Department of
Revenue.
Several central ministries such as Ministry of Electronics & Information Technology and
Department of Heavy Industries have announced Phase Manufacturing Programs (PMPs) to
encourage higher value addition in segments of Smartphone (meity.gov.in/content/phased-
manufacturing-programme) and Electric Vehicle (EV PMP), respectively. These PMPs have
proposed a calendar of increasing BCD on components in a phased manner.
Indian Customs Electronic Gateway (ICEGATE) is the national portal of CBIC that provides
e-filing services to the trade, cargo carriers and other trading partners electronically. It also
hosts a Custom Duty Calculator* that can be used to identify applicable BCD on imported
goods.
India Trade Portal is portal developed and maintained by the Federation of Indian Export
Organisations (FIEO), Ministry of Commerce & Industry. The portal can be leveraged to
identify BCD rates as per arrangements under Most-Favoured Nation (MFN), Free Trade
Agreements (FTAs) and Preferential Trade Agreements (PTAs).
5. India has signed several FTAs and PTAs with countries in East Asia (Japan, Korea, Malaysia,
Thailand, Singapore) and ASEAN Bloc, among others. Details of these agreement can be
accessed at this Link on website of Ministry of Commerce & Industry
* Please note that the tool at times may not reflect the recent changes in BCD and hence, we
advise you to always check Customs Notifications at CBIC website to access the latest
information.
Table 2
ii. Social Welfare Surcharge (SWS): It is a tax imposed on the value of goods including the
BCD value. It is generally 10% unless the good is exempted from this tax.
iii. Integrated Goods & Services Tax (IGST): Introduced on 1 July 2017, GST subsumed
most indirect taxes such as excise duties and a special additional customs duty that was
applied previously. A concept note on GST can be accessed at this Link on website of GST
Council. IGST is imposed on the imported goods to provide a level playing field for domestic
manufacturers, who also pay an equivalent tax (Central GST + State GST or IGST) on sale of
goods. IGST on imported goods can be set-off against any other GST liability in India. There
are five slabs of IGST 0%, 5%, 12%, 18%, 28%.
iv. Compensation Cess: This is an additional tax that is imposed along with GST on both
imported items as well as domestically manufactured items on products that are classified as
notified E.g. Special Utility Vehicles, Cigarettes, Tobacco, Aerated Water, etc.
At times to discourage import of certain finished goods or input materials that are available in
large quantities, Government of India imposes Anti-dumping duties or Safeguard duties over
and above the four taxes mentioned above.
There are five mechanisms that can be used to reduce the applicable BCD. Exemption or
waiver of IGST is not permitted as per law:
Special Economic Zone: Units operating in SEZ are exempted from BCD and IGST on
Capital Goods, Raw Material and other Fixtures. If these units, do any sales in the domestic
market of India then they pay applicable BCD + IGST on the product or service.
6. Bonded Warehouses: Bonded Warehouse can be used for storage of goods as well as for
manufacturing as elucidated in Circular 38/2018 dated 18 October 2018. Unitholders can
defer BCD on imported Capital Goods, Raw Material and other Fixtures. This duty can be
deferred until clearance in the domestic tariff area and can be exempted if the products are
exported/re-exported. There is no time limit for duty deferment. More on this concept at this
Link.
Free Trade Warehousing Zone: Governed by SEZ Act 2005 and SEZ Rules. Predominately
for EXIM trade & storage. Duty deferment permitted on imported goods and also permits
trade transactions in foreign currency.
Foreign Trade Policy 2015-20: Import policy is published by Directorate General of Foreign
Trade (DGFT), Ministry of Commerce & Industry. Foreign Trade Policy schemes that can
help reduce BCD liability are:
Project Import Scheme: Relaxes duties for import of specific capital goods
Advanced Authorization Scheme: Exempts duties for import of inputs for export
consignments
Export Promotion Capital Goods (EPCG): Allows import of capital goods including spares
for pre-production, production and post-production at zero duty subject to an export
obligation of 6 times of duty saved, to be fulfilled in 6 years from authorization issue date.
Sectoral Incentive Schemes: Central Government may announce exemption from BCD for
specific types of machinery to encourage manufacturing or modernization in certain sectors.
E.g. Government of India reduced BCD on 35 capital goods that are used for manufacturing
mobile phone components such as a lithium-ion battery, speaker and receiver of mobile
phones, data cables, optical fibre etc.
Free Trade Agreements & Other Preferential Treaties: Most Favoured Nation (MFN) or
arrangements under FTA /PTA can help reduced BCD rates. A thorough check should be
conducted in Customs Notifications at CBIC or through India Trade Portal to identify such
benefits.
Invest India’s sectoral experts can help you evaluated the impact of import duties on your
business model in India. They can also help you interpret the level of value addition that is
required to manufacture goods in India from an import duty perspective or whether the
products can be imported in finished form / Semi-Knocked Down (SKD) form or Completely
Knocked Down (CKD) form.
Procedure for Refund of Deemed Exports
The refund of tax paid on the supply regarded as deemed export is admissible to either the
supplier or the recipient. The deemed exporters can either:
ˆ To levy of GST on supply and collect it from the recipient. In this case, the recipient shall
apply for a refund.
ˆ To levy of GST on supply and not to collect it from the recipient. In this case, the supplier
shall apply for a refund through GST RFD 01. In this case, a declaration is also required from
the recipient to the effect that he does not avail any input tax credit of the same.
Refund procedures in case of Supplies for Export of Goods & Services
7. ˆ Refund procedures in case of Supplies for Export of Goods
There is no need to file refund application (GST RFD-01) separately. The shipping bill filed
by the exporter is sufficient to claim refund.
The law specifies that shipping bill is to be considered as a refund claim on satisfying
following two conditions:
I. A person carrying the export goods should file an export manifest; and
II. Applicant should have filed the returns GSTR-3 or GSTR-3B appropriately. Once the
above two documents are filed appropriately, the refund is processed by the department.
ˆ Refund procedures in case of Supplies for Export of Services The option to pay IGST and
claim a refund is always available. In this case, the refund claim has to be filed in Form GST
RFD-01.
For exporters of services, the following are also required to be filed along with the refund
claim:
I. A Statement containing Number and Date of Invoices; and
II. Bank Realization Certificates / Foreign Inward Remittance Certificates
Refund procedures for Export of Services and Supplies to SEZ
According to CGST laws, the supplies made with the payment of IGST to an SEZ Developer
or SEZ Unit holder, he is liable for the payment of IGST at applicable rates. The export
invoice will be generated in Indian currency with a proclamation that ‘Supply is meant for
SEZ developer / unit with payment of integrated tax’. The declaration made with the
mentioned option will make the refund procedure fast. The IGST mentioned in the invoice is
not charged from the customer, it is just for the acknowledgement purposes.
The supplier of goods or services to an SEZ are required to file the following along with the
refund claim:
I. A Statement containing Number and Date of Invoices; and
II. Proof of Receipt of goods or services which is authorized by the specified officer of SEZ
III. Details of payment made
IV. The declaration that the SEZ or developer of SEZ has not claimed the input tax credit of
the taxes paid by the supplier
Example- ABC Pvt. Ltd. supplies the Goods (whose purchase price is Rs 2 lakh) for Rs 2.5
lakh to XYZ Pvt. Ltd located in Kandla SEZ.
The applicable IGST will be charged at 18%.
The invoice will look like:
Sale Price – Rs. 2.50 lakh
Add – IGST @ 18% Rs. 0.45 Lakh
……………………………………………………..
Invoice Value Rs. 2.95 Lakh
8. Particulars IGST
Output Tax(18% on Rs. 2,50,000) 45,000
Less - Input Tax (18% on Rs. 2,00,000) 36,000
Payment to be made in cash 9,000
ABC Pvt. Ltd. will release the tax liability of Rs 45,000 by using Input Credit of Rs 36,000
which is available on an account and cash payment of remaining Rs 9,000. So, ABC Pvt Ltd.
will get a refund which is the real net worth of input tax credit.
Provisional Refund in case of Supply to SEZ The exporters and suppliers of SEZ are entitled
to a 90% refund on a provisional basis. Provisional refund is granted within seven (7) days of
the refund claim. The amount of provisional refund is credited directly to the claimant’s bank
account.
There is a condition attached to provisional refunds. The provisional refund is not granted if
the applicant has been prosecuted for any offense under the GST law or earlier law within
past five (5) years. The amount of tax evaded in such prosecution shall be more than Rupees
Two Hundred and Fifty Lakhs (Rs. 2.5 Crores).