Implementation of GST in Customs -Changes in BE/SB Declaration

4: Levy and Collection ofJGST : of IGST with •• Date: 28.05.2017 , The Taxable Value for calculation of 165T value is laid out as ,per Section 3(8) of the Customs Tariff Act. The IGST 'and GST Compensation C~ss would be collected as Additional Duty of Customs under sectio'n 3(7) and 3(9) of the Customs Tariff Act. The IGST rates are notified by Central Government through a , Notification under Section 5 of IGST Act, 2017. The percentage rate of integrated tax in respect of goods specified are in respective (I) (ii) 2. The 'legislations referred above have necessitated changes in Bill of Entry and Shipping Bill declarations. The salient features of these changes in the format of the declarations are enumerated below for easy reference and compliance. Changes in Bill of Entry: 3. The Changes in Bill ofEntry can be broadly listed as follows: , ' a) Levy and Collectipn of IG5T ' b) Declaration ofCETH c) Identification of G5T Beneficiary d) Seam'/ess credit flow based oh, online reconciliation G5T return. OFFICE OFTBi COMMISSIONER OF CUSTOMS, AIRPORT SPEGIAL CARGO, COURIER CELL, AVAS CORPORATE POINT. MAKWANALANE,' SAHAR, ANDiIERI (EAST), MUMBAI-400 099. ......"........,,••l*••:lnh'U*11:._•••.....*.""...... PublicNoticeoZj2017

Subject: Implementation of GST in Customs -.Chjanges in BE/58

. Dec~~rat.ron -Reg. . . Attention of Importers/Exporters, Custom Brokers & Trade is invl~ed . to Implementation of GST from 1st JuIY,.2017. Reference is also Invited to Taxation Law (Amendment~) Act;' 2017 (18 of 2017), 'bringing. out amendments in Customs and Central Excise legislations in alignment with, ' GST implementation. Further reference'is iilVited fa various decislbns iii l,ST '- Council meeting, documentation of the same iii CBEC Website and also the advisory Issued by Member(Customs) vide D.O. letter dated 20.6.17 on Customs related m:ltters on introduction of Goods and Service Tax regime. '. F. No,:AIR/CUSjSO/CC!27S/2010 ; ,J 1 ";

"• schedules. Similar is the case for GST Compensation Cess Schedule under Section 8(2) ofGST (Compe~sation to States) Act, 2017. The importer shall have to quote the notification number and, serial number in the format <SCH?'<5L:NO>(Schedule suffixed by serial No of the schedule) for levy of IGST rate. For instance, under Schedule II and for alJ,Jtem under Serial Number 3, the serial number in the declaration should be "113". ThelGST Exemption can also:be availed if applicable, by 'quoting notification issu~d under settlon 6 of IGST Act or Customs Act as '. .. applicable. Similar is the case for Compensation Cess under Section 8(2) of GST (Compensation to States) Act, 2017. (HI) Descripti GSTIN- Regn_Type Type of iEC to be GST Benefit on,(l) Imp.

as '. .. applicable. Similar is the case for Compensation Cess under Section 8(2) of GST (Compensation to States) Act, 2017. (HI) Descripti GSTIN- Regn_Type Type of iEC to be GST Benefit on,(l) Imp. (2) (3) declared (4) (6) GSTIN G TP,CMP,CAS, Individual Yes , Normal ISD,NR,TDS, GSTIN 0 GOV Generic IEC of Yes Govt Govt. GSTIN UN D UN Generic IEC of Yes Diplomats Aadhaar A Indivi./Generic No . Passport P Indivi./Generic No PAN f Indivi./Generlc No TAN T Indivi.jGeJieric No 5. Declarationof CETH: The Central Excise Tariff shall get stand amended w.e.f.the daY,the Taxation Law (Amendments) Act, 2017 comes into force. in such a scenario, the Central Excise levy is applicable on certain goods, while it is' not applicable on certain g90ds. Wherever the additional c;ustoms duty(CYD) is. levied, CETH as applicable may be declared. In case of None Applicability of CETH, "NOEXCISE" should be quoted. 6. Identification of GST Beneficiary: To avail IGST Benefits on Imports, declaration of State Code and GSTIN in Bill of Entry is mandatory. The same needs to be added in CTX Table of the BE Declaration. In any case of non availment of IGST, State Code along with one ofth,e other Identity proof listed below needs to be provided, so as , to enable apportionment'lo the respective states. " . " , ,I i I iI ! .1, --~-------. - r:--~--'-'-'..-'~--=..:......:..-:.--~~---.:..- ~l-!::e==";;-J----l~ o .- . - .-- ..- --..-'--.'

s , to enable apportionment'lo the respective states. " . " , ,I i I iI ! .1, --~-------. - r:--~--'-'-'..-'~--=..:......:..-:.--~~---.:..- ~l-!::e==";;-J----l~ o .- . - .-- ..- --..-'--.'

j It may be noted that benefits f Credit flow can happen only when GSTIN is quq~ed correctly and is mate ed with GSTN; Valid or active Provisional ID ~~ . can be quoted in lieu of GSTI . How~ver, credit would flow only when the same Provisional 10 is used to ile returns. ,'''' ., .. To summarize, Every mporter needs to declare their State of CJestinatlon as State Cod, GST Type as in Column (2) and GSTIN/identjflcation Code in t eir Bill of Entry. ..I., ·d "1 .1 0'• 0--. 9.• 0 .• t '.~ . t'( •• 0'· ~J. 0"., ,. • J., O. i
~. ~. ';1 7. Seamless Credit flow base, on Online Reconciliation of.IGST with GST t ,_ • ", Return: crt !. . In the Pre-GST Era, physi al'copy of Bill Qf Entry nerds to be. submitted 0.: to avail the input tax credit of dditional Duty of Customs. Similarly, Physical \ .• application along with suppo ng documents needs to be submltted.C!s per 0'" I t'i....1 laid out'procedure for refund of Special Additional Duty of Customs. With p:.'.! the ImplementatIon of GST, th re would be seamless credit flow of IGsT·to o. the GSnN Beneficiary mentio ed In the Bill of Entry on filing of Returns. 0 ' ...... Howev~r to avail the IGST ·cre.

:.'.! the ImplementatIon of GST, th re would be seamless credit flow of IGsT·to o. the GSnN Beneficiary mentio ed In the Bill of Entry on filing of Returns. 0 ' ...... Howev~r to avail the IGST ·cre. It,..~!,)~JIl]Pl:l.rter needs to mentlonthe.Port ---: .. Code, Bill of Entry Number, Bil of Entry Date, aggregate IGST Taxable value, 0: Total IGST Amount, Total GST ompensation Cess In the GST Return which b. 1 would be validated online with ICEGATE. f. • For the benefit of the I porters, the above details would be made 8. available In the FInal copy ofth Bill ofEntry. O. 8. IGST Availment In case of M nual Bill of Ent b. Since all the validation r lated to IGST refund or flow of IGST credit b. would happen electronicaHy between Customs EDI and GSTN, It is ll. imperative ~ere that the req (red data Is captured electronically witho'ut 2. fail for all the imports and exp rts whether 'or not they are made through o. EDI locatIons. In case of EDI I cations, Board has issued instructio':ls vide· b- ENo. 401/81!201l-Cus III date '2nd June 2017 wherein it is envisaged that ~/. any manual bill of entry or shipping bill in EDI locath:ms need, to be filed p_ following the procedure laid out in the 'above instructions. . Oe Changes In Shipping Bill: ~.• R. 9.

nvisaged that ~/. any manual bill of entry or shipping bill in EDI locath:ms need, to be filed p_ following the procedure laid out in the 'above instructions. . Oe Changes In Shipping Bill: ~.• R. 9. The Integrated Goods an~ Services 'Tax Act, 2Q.17, under section 16 PO, provides that export of goods or services or both and supply of goods or .. services or both to aSpecial Economic Zone developer or a Special Economic ne Zone unit shall be,zero rated supply an'd credit- of in'put tax may be availed ~. n for making iero-rated slipplie's, notwithstanding that such supply may be,an·. --j U,O exe'mpt supply., The section further lays down that a registered person I' ~ making zero rated supply shall, be eligi!5le to. claim refund under either of , , ~ the follOWing options, namely:"::":': ' , ' , . '~ " ~ A ' ~., ," -. ".' .... . ""~,;'":";.::':/.;; ;:;::!~.:::~ •. '"'-'A- -:: .;i~,1-,;::~. :·::::;·F;:;"D:}·:,;:i¥..~-:&"~:,"~";'!;,,"._.2±: :'7:~:ii<-: ,. "'~-.••"-.•~", ."i'·}f,.,;j..,.,.::,;. ,;~c='=====~==-====~~~~~ o

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I • .' -I ." ;J "'1 .-1 .' J ':f .; i ., ,..- L:7' . (a) he maysupplygoods orservices or bath underbond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be preseribed/ without payment ofintegrated tax and claim refund ofIinutiIised input tax Cfrdit; or (b) he may supply goods or services or both, subject to such conditions, safeguards and procedure as may b'e"prescribed; on payment of integrated tax and claim refund of such tax paid on goods orservices or both supplied. 10. Under the G5T Laws, tqxpayers would be filing their outward supply returns on GSTN for all the supplies made by them including exports. Fo~ exports, they will be reqUired to quote the Shipping Bill and export invoice ," . ~ .. details which shall be validated by the Customs' EDI system. The , . confirmation oft~e export by Customs shall be made once the EGM is filed and closed. Based on this validation 'only the taxpayer (exporter) shall be granted refund of the IGST paid by him on the exported goods. This validation shall also act as the proof of export in ca~e the exporter has made the supply under bond or LUT without payment of IG5T. For facilitating the above, Shipping Bill forms h~lVe aJsobeen modified to capture the necess~ry details. 11.

xport in ca~e the exporter has made the supply under bond or LUT without payment of IG5T. For facilitating the above, Shipping Bill forms h~lVe aJsobeen modified to capture the necess~ry details. 11. GSTIN Entity identification To avail IGST Benefits on Exports, declarati0!1 of State Code and GSTIN in Shipping Bill is mandatory. The same needs to be added in SB. Main Table of the SB Declaration. In any case of non flvailment of IGST, State Code along with one of the other Identity proof listed .below needs to be provided. Descripti G5T1N- Regn_Type .Type of IEC to be G5T on (1) . Exp. (a) declared (4) Benefit (2) (6) GSTIN GSN TP,CMP,CAS Individual Yes Normal ,15D,NR,TDS • , , GSTIN GSG GOV Generic IEC of Govt. Yes Govt GSTIN GSD ,_··c...· UN Generic IEC of Yes UN Diplomats Aadhaar ADH Indivi./Generlc N.o Passport P5P Indivi./Generic No PAN PAN Indivi./Generlc No TAN TAN Indivi/Generic No "

''1("' -j ,---------"----''---------'------'---'.:..~,--- ! , ",' . 12. IGST Payment Details ," ", 2,00,000 24,000 2,00,000 24,000 4,00,000 48,000 " 200 100 Total = (900/1000) X2,00,000 =Rs 1,80,000 = (900/1000) X24,000 =Rs 21,600 =(1900/2000) X2,00,000 = Rs 1,90;00p =(1900/2000) X24,000 = Rs 22,800 2000 1000 _ B A For Item A Taxable Value IGSTPaid For Item B Taxable Value IGS1' Paid IGSTPayment .Status :;: To indicate whether the exports are being . ' -'-:"':;' made on': P-:- Payment oflG~T LUT - Und~rBond or lUT , , NA - Where IGST is'not applicable, i.e.

xable Value IGS1' Paid IGSTPayment .Status :;: To indicate whether the exports are being . ' -'-:"':;' made on': P-:- Payment oflG~T LUT - Und~rBond or lUT , , NA - Where IGST is'not applicable, i.e. the supply is non-taxable; iriclu~ing' exports made by non GST registered exporters , 13.Taxable Value and IGST Paid Following fields shall have to be captured to either sanction refund in case exports are made on payment of IGST or, give the proof of exports in case exports were made under bond/LUT without payment of IGST. Since the actual quantity and value of·the goods finalIy exported may sometim'es be at variance with that Indicated 'on the 'export invoice, these . ' . . particulars have to be Individually declared for every Item. Here, Taxable Value is the value of the item actually being exported on 'Which IGST has been palc}o In case of short shipments due to shut o.utfback.to.town, IGST has to be calculated proportionately item wise in the invoice based on the actual quantity ofexports. This is further explaIned by the following illustration: Illustration: An exporter raises im export Invoice as below:
Due to some reasons, he finally exports only 900 units of Jtem A and 1900 units of Item B. For his shippln~ bill, the Taxable value and IGST of : each item shall be calculated In proportion of the actuaI quantity shipped to the quantity on export invoice, i.e. "j ::1 "J :"j ,

s of Item B. For his shippln~ bill, the Taxable value and IGST of : each item shall be calculated In proportion of the actuaI quantity shipped to the quantity on export invoice, i.e. "j ::1 "J :"j ,

. Export. invoice should' be compliant to GST Invoice Rules (not exceeding sixteen characters con.talning only alphabets, numerals and two sp,ecial characters ( "rand "-"). . " • State Code, GSTIN type and GSTIN Code would be allowed to enter afresh during assessment, only If the same is blank. The (jSTIN Identifier cannot- be modified at later stages. 16. The difficulty in the implementation of the above changes may be brought ·to the, notice of System Manager, 'Additional Commissioner of , , .. 14. 'Export Invoice&ltem : ~;. ;t;iJ The taxable value shall be matched with the export invoice pa rticulars declared in the GST return, i.e. the invoice on which IGSTwas paid. No other invoice like Commercial I~voice etcl should be used for computation of Taxable Value and IGST paid. The refund of IGSTshall then be limited to the ·."IGST paid' oil the goods actually exported, i.e.

invoice like Commercial I~voice etcl should be used for computation of Taxable Value and IGST paid. The refund of IGSTshall then be limited to the ·."IGST paid' oil the goods actually exported, i.e. Rs 44,400 in the above illustration. , . , The export invoice shoul~ be issued by the supplier cum exporter in compliance with the GST Invoice Rules: It may also be noted that as per the GST Invoice' R~les"in'case'of export of goods or services,'the Invoice shall carry an endorsement "SUPPLY MEANT' FOR EXPORT ON PAYMENT OF INTEGRATED TAX" or "SUPPlY MEANT FOR EXPORT UNDER BOND OR LETTER 0F UNDERTAKiNG WITI10tlTP1\YMENT OF INTEGRATEDTAX", as the case may be, and shall also contain the following details: (i) name and address of the recipient; (ii) address of delivery; and (iii) name of the country of destination. Other details to be given in the invoice table of the Shipping Bilr'shall include Third Party remittanci:! details as per RBI requirements, Terms Place (INCOTERMS), End Use (as per- the codesalYailable, in Imports)etc., as the case maybe. Th~ End Use of the item should be declared against each of the item. The list is provided in Annexure-I. . 15. Transitory Provisions for BE :. The Advance/Prior BE filed before the implementation of GST and regularized for implementation m~y not have relevant declar"ations for Duty , . . and GSTIN Identifier details. In such clearances may not be allowed in the system.. The Importers may seek to reassess the .,same by feeding applicable IGST notifications and GSTIN identifier duilftg the assessment. G5TIN identifier. '. " . .' I' .,

y not be allowed in the system.. The Importers may seek to reassess the .,same by feeding applicable IGST notifications and GSTIN identifier duilftg the assessment. G5TIN identifier. '. " . .' I' .,

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