Topic Name – How will imports be taxed under GST
Imports of Goods and Services will be treated as inter-state supplies and IGST will be levied on import of goods and services into the country. The incidence of tax will follow the destination principle and the tax revenue in case of SGST will accrue to the State where the imported goods and services are consumed. Full and complete set-off will be available on the GST paid on import on goods and
Imports of Goods
The import of goods has been defined in the IGST Act, 2017 as bringing goods into India from a place outside India. All imports shall
be deemed as inter-State supplies and accordingly Integrated tax shall be levied in addition to the applicable Custom duties. The IGST
Act, 2017 provides that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions
of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the
said goods under the Customs Act, 1962. The integrated tax on goods shall be in addition to the applicable Basic Customs Duty
(BCD) which is levied as per the Customs Tariff Act. In addition, GST compensation cess, may also be leviable on certain luxury and demerit goods under the Goods and Services Tax (Compensation to States) Cess Act, 2017.
Import of Services
Import of services has specifically been defined under IGST Act, 2017 and refers to supply of any service where the supplier is
located outside India, the recipient is located in India and the place of supply of service is in India.
As per the provisions contained in Section 7(1) (b) of the CGST Act, 2017, import of services for a consideration whether or not in the
course or furtherance of business shall be considered as a supply. Thus, in general, import of services without consideration shall not
be considered as supply. However, business test is not required to be fulfilled for import of service to be considered as supply.
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About Tabish Ahmad
Tabish Ahmad is an Advocate at Patna High Court works in the area of Corporate Law and Corporate Litigations. Tabish represented many clients in complex legal issues focusing on corporate compliance. As An Advocate it is the duty towards nations to make the citizen and businessmen aware about laws and compliances in order to comply as law abiding citizens.
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