All about Import of goods under GST – Detail Analysis with Live Practical Examples

Import : Bringing Goods into India from a place out side India.

Case Study : Mr Ram has purchased certain goods from America after manufacturing. For manufacturing he is providing tools to foreign manufacturer hence he has purchased the same at America and those tools are used in America. In that case tools are not brought into India hence not treated as Import .(INA Bearings P Ltd. AAR – Maharasthra)

IMPORTANT :

• No IGST shall be payable on
• No IGST Shall be payable on dumping duty, Protective Duty because they are categorized as duty under
• GST Compensation cess shall be charged on import of No compensation cess shall be charged on IGST Component.

HIGH SEAS SALE :

• Means sales in the course of
• High Seas sales to be on stamp
• No GST on High seas sales, GST payable only while clearing goods for
• Last buyer has to provide complete chain of

Goods sold from custom bonded warehouse in India :

• No IGST shall be charged till the custom
• In schedule III of CGST Act, it is mentioned as neither supply of goods nor supply of
• Import will be completed only when goods crosses the custom

Third Country Shipments where goods do not touch India : In this case goods shall be sale on bill to ship to model. Goods supplied from one non taxable territory to other non taxable territory hence treated as neither supply of goods nor supply of services. Hence No question of GST.

Commission agent in case if third country shipments : In this situation goods supplied from one non taxable territory to another non taxable territory and in this transaction Indian party acts as commission agent and get income from Commission. And commission has been exempted under GST wide (Notification No. 9/2017 dated 28-06-2017 entry No. 12AA)

Following documents should be maintained for five years :

• Copy of bill of lading
• Copy of executed contract
• Copy of commission debit note raised by an intermediary service
• Copy of certificate of origin issued by service recipient located in non taxable territory
• Declaration from

  IMPORTATION OF SERVICE IS “SUPPLY”     

• As per section 7(1)(b) import of services for a consideration whether or not in the course or furtherance of
• Import of service from HO or branch outside India will be subject to GST even if no payment was made to HO or branch outside
• Import of service from related person taxable even if without
• If services imported from out side India then in that case RCM shall be paid by
• No RCM shall be payable by recipient in case of OIDAR
• If services imported by UN or Specified international organizations then no GST shall be charged on such
• Services imported by diplomatic mission or consular is also exempt from
• IGST shall not payable on import of services under RCM if value of royalty and license fee was included in custom

The integrated tax paid by tourist leaving India on any supply of goods taken out of India by him shall be refunded in such manner and subject to such conditions and safeguards as may be prescribed.

Explanation.––For the purposes of this section, the term ‘tourist’ means a person not normally resident in India, who enters India for a stay of not more than six months for legitimate non-immigrant purposes

Goods sended outside India for exhibition or on consignment basis for export promotion :

• No GST because it is neither supply or Hence no need of any LUT or Bond in that case. As and when goods has been sold tax invoice should be issued.
• Earlier LUT not issued although refund can be claimed if goods sold within 6
• If after exhibition goods again imported to India then also no GST shall be Because there is no consideration hence not considered as supply hence no GST.

IMPORTANT : E- commerce operators can export goods through Foreign post office (FPO). These exports will be zero rated. Declaration is to be filed in form PBE – 1.

EXPORT TO NEPAL AND BHUTAN :

• Supply of goods or services to Nepal and Bhutan shall be treated as export whether consideration has been received in Indian
• Supply can be made under Bond or
• PRIOR TO 01-02-2019 in case of services consideration is required in foreign currency but now this provision has been removed hence consideration can be received in Indian currency in both the

These supplies are not considered as exempt supply for calculation of reversal of ITC (For Rule 42 and 43 of CGST Rules)