Definition of Import

 

Definition of Import & Tax Calculation

As per GST, Import of Goods is defined as ‘’Import of goods’ with its grammatical variations and cognate expressions, means bringing goods into India from a place outside India;

Thus, bringing goods from outside India into Indian Territory is called as Import of Goods

Whether GST is application of Import of Goods or services

As per GST, Import of good or services into India is treated as supply of goods or services as inter-state trade and IGST is applicable. IGST amount is collected with Import duty while filing Bill of entry with customs.

IGST is applicable on the Assessable Value + Custom Duty levied + Any other duty chargeable on the said goods or services being in force at that time, and in the same manner as, a duty of customs.

Calculation of IGST on Import :

Example-

Suppose the assessable value of an article imported into India is Rs.100/-. Basic Customs Duty is 10% ad-valorem. Education Cess is 3%;Integrated tax rate is 18% and compensation Cess is 15%

Particulars Duty
(A) Assessable Value                         Rs. 100.00
(B) Basic Customs Duty@10%          Rs.10.00
(C) Education Cess @3%                  Rs.0.30
(D) Value for Integrated Tax               Rs.110.30
(E) Integrated Tax @18%                   Rs.19.85
(F) Value for Compensation Cess      Rs.110.30
(G) Compensation Cess @ 15%        Rs. 16.55
(H) Total Duty ( B+C +E+G)                Rs.46.70