Jul 13, 2017

India GST and Custom Duty Changes

India GST & Custom Duty

GST on Imports in India 

Would there be any changes on BCD (Basic Customs Duty) after GST?  Are there any changes in Education Cess, Anti-dumping duty, Safeguard duty? What is the changes in CVD and SAD after introduction of GST? 

BCD has been kept outside the purview of GST and will be charged as per the current law only.

India GST Custom Duty
New Custom Duty on Gold
Prior to GST being implemented, the overall tax rate on gold jewellery stands at 12.2%. ( 10% customs duty, 1% excise duty, and 1.2% VAT)

GST replaces the excise duty and VAT components, but sits on top of the Import Duty. The Gold rate of 3% announced on 3rd June is significantly lower than many had feared. And, on the face of it, represents only a modest tax increase.

VAT varies state-by-state from 1% in Rajasthan to 5% in Kerala. Additional local taxes can push the overall tax on gold jewellery even higher


10 percent basic customs duty (BCD)
On the same day of Goods and Service Tax (GST) roll out across the country, the Government also imposed a 10 percent basic customs duty (BCD) on cellular mobile phones and specified parts of cell phones such as chargers, battery, wired headphones, microphones, keypad, USB cables, and receivers.

Also, the basic customs duty charges of 10 percent will also be applicable for “certain other specified electronic goods,” but the government did not disclose the items.





Impact of GST on imports in India
On the imports side there would be no major impact on levy of Basic Customs duty, Education Cess, Anti-dumping duty, Safeguard duty and the like.  However, the Additional duties of Customs, which are in common parlance referred to as Countervailing Duty (CVD) and Special Additional duty
of Customs (SAD), would be replaced with the levy of Integrated Goods and Services Tax (IGST), barring a few exceptions.

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