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Calculation on Import Duty Post GST

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Calculation on Import Duty Post GST
By: Kishan Barai
July 22, 2017
  • Contents

Case 1.-Where product attracts IGST but not CVD
Suppose Assessable Value (A.V.) including landing charges =Rs. 100/-

(1) BCD- 10%
(2) IGST-12%
(3) Education cess – 2%
(4) Higher education cess -1%

In view of the above parameters, the calculation of duty would be as below:

(a) BCD = ₹ 10 [10% of A.V.]
(b) Education cess- ₹ 0.2 [2% of (a)]
(c) Higher education cess- ₹ 0.1 [1% of (a)]
(d) IGST- ₹ 13.236 [A.V.+(a) +(b) +(c)]x12%

Case 2. Where product does not attract CVD but attract IGST as well as compensation cess
Suppose Assessable Value (A.V.) including landing charges =Rs. 100/-

(1) BCD- 10%
(2) IGST-12%
(3) Education cess – 2%
(4) Higher education cess -1%
(5) Compensation cess- 10%

In view of the above parameters, the calculation of duty would be as below:

(a) BCD = ₹ 10 [10% of A.V.]
(b) Education cess- ₹ 0.2 [2% of (a)]
(c) Higher education cess- ₹ 0.1 [1% of (a)]
(d) IGST- ₹ 13.236 [A.V.+(a)+(b)+(c)]x12%
(e) Compensation cess- ₹ 11.03 [A.V.+(a)+(c)+(d)]x 10%

Case 3. Where product attract both CVD & IGST:
Suppose Assessable Value (A.V.) including landing charges =Rs. 100/-

(1) BCD- 10%
(2) CVD- 12%
(3) IGST-28 %
(4) Education cess – 2%
(5) Higher education cess -1%

In view of the above parameters, the calculation of duty would be as below:

(a) BCD = ₹ 10 [10% of A.V.]
(b) CVD = ₹ 13.2 [ 12% of (A.V.+ BCD)
(c) Education cess- ₹ 0.464 [2% of (BCD+CVD)]
(d) Higher education cess- ₹ 0.232 [1% of (BCD+CVD)]
(e) IGST- ₹ 34.69 [A.V.+(a)+(b)+(c)+(d)]x 28%

Case 4. Where product attract CVD, IGST& Compensation cess:
Suppose Assessable Value (A.V.) including landing charges =Rs. 100/-

(1) BCD- 10%
(2) CVD- 12%
(3) IGST-28 %
(4) Education cess – 2%
(5) Higher education cess -1%
(6) Compensation cess-10%

In view of the above parameters, the calculation of duty would be as below:
(a) BCD = ₹ 10 [10% of A.V.]
(b) CVD = ₹ 13.2 [ 12% of (A.V.+ BCD)
(c) Education cess- ₹ 0.464 [2% of (BCD+CVD)]
(d) Higher education cess- ₹ 0.232 [1% of (BCD+CVD)]
(e) IGST- ₹ 34.69 [A.V.+(a)+(b)+(c)+(d)]x 28%
(f) Compensation cess – ₹ 12.389 [A.V.+(a)+(b)+(c)+(d)]x 10%

In cases where imported goods are liable to Anti-Dumping Duty or Safeguard Duty, calculation of Anti-Dumping Duty or Safeguard duty would be as per the respective notification issued for levy of such duty. It is also clarified that value for calculation of IGST as well as Compensation Cess shall also include Anti-Dumping Duty amount and Safeguard duty amount.

 

By: Kishan Barai - July 22, 2017

 

Discussions to this article

 

Dear Sir,

You have prepared ready reckoner. Made easy for everybody to grasp.

By: KASTURI SETHI
Dated: 24/07/2017

WHY EDUCATION CESS--HIGHER ED CESS-CANCELL/UNNECESSARY-LET SIMPLYFY

By: NARENDRA SEKSARIA
Dated: 24/07/2017

Calculation on Import Duty Post GST give in Indian Customs gears up for GST roll-out Guidance Note for Importers and Exporters PDf Page No. 9, 10 and 11 please select below link to see this.

http://www.cbec.gov.in/resources//htdocs-cbec/deptt_offcr/gst-advisory-importers-exporters-final-version-final.pdf

By: KIRTIKUMAR PUROHIT
Dated: 24/07/2017

Nice article . Thanks

By: Ganeshan Kalyani
Dated: 26/07/2017

In view of the above parameters, the calculation of duty would be as below:

(a) BCD = ₹ 10 [10% of A.V.]
(b) Education cess- ₹ 0.2 [2% of (a)]
(c) Higher education cess- ₹ 0.1 [1% of (a)]
(d) IGST- ₹ 13.236 [A.V.+(a)+(b)+(c)]x12%
(e) Compensation cess- ₹ 11.03 [A.V.+(a)+(b)+(c)]x 10% [Small Correction from my above Post]

By: Kishan Barai
Dated: 26/07/2017

The above calculation of gst i found in the guide give by cbec.

How should be calculation of IGST in case of Imports under Advance license ?

By: Nandan Khambete
Dated: 05/08/2017

I had posted this re edited article as there was error in formula in CBEC website, also do read my comment of changes made, there would be exemption of Basic duty only for imports under AA, IGST has to paid on inputs & while doing 15% VA on exports IGST has to claim back, it is ruled as of now, updates will follow on CBEC

By: Kishan Barai
Dated: 06/08/2017

 

 
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