Calculation on Import Duty Post GST

[Kishan Barai]

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.