With the GST set to be rolled out from 1st July, the final phase of preparation for its implementation is in full swing. Customs too has a major stake in the early implementation of GST as IGST would begin to be levied on the imports from 1st July, the credit of which shall be available to the importers.

Similarly, the refund on export of goods is contingent upon on filing of Shipping Bill with GST Invoice & Export General Manifest.no

Changes In Brief
 1.  Levy of Duties  IGST & Compensation Cess (if applicable) to be levied on imports

Sub-section (1) of section 5 of IGST Act. 2017

 Thus, w.e.f 1st July, all imported goods shall attract IGST & Cess (if applicable, In addition to the Customs Duties such as Basic Customs Duty, however, the levy of CVD & SAD shall cease to exist on imported goods other than those on which Central Excise Duties / VAT continued to be levied in the current th new regime.
 2.  Change in Bill of Entry & Shipping Bill Forms  

Bill of Entry

To capture additional details required for validation with GSTIN in case of IGST Refund claims (export) or availability of IGST (imports)


















Shipping Bill Forms

Section 16

 New provisions for levy of IGST & compensation cess on imports have been introduced under the Customs Tariff Act, 1975, Bill of Entry, shipping Bill & Courier Regulations & Forms both Manual & EDI have been modified.

Bill Entry – Information in the Bill of Entry will be reconciled with their returns filed on GSTN. Credit claimed in their GST Return in respect of IGST paid on imports would be cross checked with the Customs EDI System.

Therefore, w.e.f   1st July, it would be mandatory for the importers to declare their GSTIN on the Bill of Entry if they wish to claim credit of IGST paid on imported goods.

Importers not registered with GSTIN will be required to declare their PAN & IEC while filing document for export or Import of goods. However, over a period of time, declaration with regard to GSTIN & PAN shall be allowed.

The IGST Act, 2017 provides that export of goods shall be ‘ ZERO RATED SUPPLY “ & Credit of ITC may be availed for making “ ZERO RATED SUPPLIES”, notwithstanding that such supply may be an exempt supply.

The tax payers are required to file outward supply returns on GSTN for all the supplies made by them including exports.

For the exports, they will be required to quote the Shipping Bill & Export Invoice details in the GST Return.

The tax payer / exporter shall be granted refund of the IGST paid by them on the exported goods based on the validation by Customs IED.

For the time being, Importers / Exporters are advised to declare GSTIN, PAN, IEC while filing document for export or Import of goods. However, over a period of time, declaration with regard to GSTIN & PAN shall be allowed.

 3.  Procedure in respect of manual filing of Bills & Shipping Bills  To electronically capture basic data required for validation with GSTIN on imports & exports.  Validation related to IGST Refund / Credit will be happened electronically between Customs EDI & GSTN.

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  1. rrkothapally says:

    It is stated in the Article by the learned author that no 4% SAD is payable on imports. No authority for such non-levy of SAD is provided. However,it seems that Section 3(5) of the Customs Tariff Act imposing 4% SAD is not amended through the Taxation Laws(Amendment) Act,2017 to do away with 4% SAD on imported goods that attract IGST. If the intention of the government is not to levy
    4%SAD on the goods liable IGST on import, Notification No.19/2006-Customs, needs to be amended suitably in my view.

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January 2021