'Anti-dumping, safeguard duties will be part of the value for levy of IGST'

Any IGST you pay can be taken as input tax credit

T N C Rajagopalan 

'Anti-dumping, safeguard duties will be part of the value for levy of IGST'

Under the GST regime, what is the status of anti-dumping and safeguard duties on imported goods?
 
Those duties are levied under the Customs Tariff Act, 1975 and so, they will not be affected. Some of the notifications where “landed value” is a criterion for calculating the anti-dumping duty may have to be amended, considering the levy of IGST. Anyway, a very important change is that at present anti-dumping and safeguard duties do not form part of the value for levy of CVD, whereas anti-dumping and safeguard duties, besides assessable value and basic customs duty, will be included in the value for the purpose of levy of IGST. 

What will be the status of advance licence/ authorisation issued by DGFT under GST? Whether manufacturer will not be required to pay customs duty and IGST under the licence and export goods under zero duty against the licence and complete the export obligation? Will we have to pay IGST and claim a refund after realisation of exports? In case IGST has to be paid, how will the input credit for refund be worked out? Will the Department accept the SION norms? What will be the status of the licence where exports have been carried out and imports will come after July 1, 2017?

The correct position on whether IGST will be exempted on imports made under advance authorisations will be known only when the revised version of the Foreign Trade Policy (FTP) is notified and the consequential notifications are issued by the Revenue Department. Any IGST you pay can be taken as input tax credit. For a refund of the unutilised input tax credit on account of zero-rated export of goods or services, Section 54 of the CGST Act, 2017 read with Rule (4) of the Revised Refund Rules prescribes the formula based on the turnover of zero-rated supplies to adjusted total turnover. SION does not come into play there.   

I have sold goods from Ahmedabad (Gujarat) to Dahod (Gujarat), but we have to make the invoice without tax because of SEZ. Which invoice do I have to make? Tax invoice or retail invoice?

Since you are not paying tax, you should make a retail invoice.  

Is there any provision under the proposed GST rules to exempt from payment of GST, (i) supply of goods from DTA to SEZ; (ii) inter-unit transfer transactions among units within the same SEZ or between two SEZs; (iii) SEZ units getting job-work done from DTA against supply of inputs. 

As per Section 16 of the IGST Act, supplies to SEZ units or SEZ developers are zero-rated. So, whether the supplies are made from DTA to SEZ or from one SEZ to another SEZ, no tax need be paid. For job-work by DTA units on inputs supplied by SEZ units, the provisions of Rules 41 to 43 of SEZ Rules, 2006 will continue to apply.
Business Standard invites readers’ SME queries related to excise, VAT and exim policy. You can write to us at smechat@bsmail.in

'Anti-dumping, safeguard duties will be part of the value for levy of IGST'

Any IGST you pay can be taken as input tax credit

Any IGST you pay can be taken as input tax credit
Under the GST regime, what is the status of anti-dumping and safeguard duties on imported goods?
 
Those duties are levied under the Customs Tariff Act, 1975 and so, they will not be affected. Some of the notifications where “landed value” is a criterion for calculating the anti-dumping duty may have to be amended, considering the levy of IGST. Anyway, a very important change is that at present anti-dumping and safeguard duties do not form part of the value for levy of CVD, whereas anti-dumping and safeguard duties, besides assessable value and basic customs duty, will be included in the value for the purpose of levy of IGST. 

What will be the status of advance licence/ authorisation issued by DGFT under GST? Whether manufacturer will not be required to pay customs duty and IGST under the licence and export goods under zero duty against the licence and complete the export obligation? Will we have to pay IGST and claim a refund after realisation of exports? In case IGST has to be paid, how will the input credit for refund be worked out? Will the Department accept the SION norms? What will be the status of the licence where exports have been carried out and imports will come after July 1, 2017?

The correct position on whether IGST will be exempted on imports made under advance authorisations will be known only when the revised version of the Foreign Trade Policy (FTP) is notified and the consequential notifications are issued by the Revenue Department. Any IGST you pay can be taken as input tax credit. For a refund of the unutilised input tax credit on account of zero-rated export of goods or services, Section 54 of the CGST Act, 2017 read with Rule (4) of the Revised Refund Rules prescribes the formula based on the turnover of zero-rated supplies to adjusted total turnover. SION does not come into play there.   

I have sold goods from Ahmedabad (Gujarat) to Dahod (Gujarat), but we have to make the invoice without tax because of SEZ. Which invoice do I have to make? Tax invoice or retail invoice?

Since you are not paying tax, you should make a retail invoice.  

Is there any provision under the proposed GST rules to exempt from payment of GST, (i) supply of goods from DTA to SEZ; (ii) inter-unit transfer transactions among units within the same SEZ or between two SEZs; (iii) SEZ units getting job-work done from DTA against supply of inputs. 

As per Section 16 of the IGST Act, supplies to SEZ units or SEZ developers are zero-rated. So, whether the supplies are made from DTA to SEZ or from one SEZ to another SEZ, no tax need be paid. For job-work by DTA units on inputs supplied by SEZ units, the provisions of Rules 41 to 43 of SEZ Rules, 2006 will continue to apply.
Business Standard invites readers’ SME queries related to excise, VAT and exim policy. You can write to us at smechat@bsmail.in
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