CBIC simplifies IGST payment for raw sugar imports shifted from AA to TRQ
CBIC has issued a procedure for importers to pay IGST on raw sugar imported under the Advance Authorisation Scheme and later converted to the TRQ Scheme. Eligible importers can approach Customs for reassessment and payment, with interest waived and input tax credit available, subject to GST conditions.
New Delhi: The Central Board of Indirect Taxes and Customs (CBIC) has laid down modalities for sugar importers to pay IGST on raw sugar that was imported under the Advance Authorisation (AA) Scheme and later converted to the Tariff Rate Quota (TRQ) Scheme.
The modalities follows the Directorate General of Foreign Trade’s (DGFT) decision to allow a one-time conversion of eligible raw sugar imports from the AA Scheme to the TRQ Scheme. DGFT has also allocated a 10 lakh metric tonne TRQ for raw sugar imports.
Under the Advance Authorisation Scheme, eligible importers can bring in certain raw materials without paying applicable import duties, subject to prescribed conditions. The TRQ system, meanwhile, allows a specified quantity of a product to be imported at a lower tariff.
CBIC said importers who need to pay IGST on raw sugar already imported under the AA Scheme can approach the concerned customs assessment group at the port of import with the relevant details.
The assessment group will cancel the Out of Charge (OOC), record the reason in the remarks and reassess the Bill of Entry to charge the applicable IGST. The importer will then have to pay the tax through the electronic challan generated in the Customs EDI System.
After the payment, the port of import will make a notional OOC for the Bill of Entry so that details including the IGST amount and date of payment can be transmitted to the GSTN portal.
CBIC said any interest liability, if any, arising from the IGST payment will be waived. The procedure can be used only once for each Bill of Entry.
Importers will be able to claim input tax credit on the IGST paid, subject to the eligibility and conditions under Sections 16, 17 and 18 of the CGST Act, 2017, and the rules made thereunder.
CBIC has also clarified that importers should not pay the IGST through the Voluntary Payment Challan module. According to the Board, that system does not adequately facilitate the transfer of relevant payment details between Customs and GSTN, which could create problems while claiming input tax credit.
CBIC has asked Chief Commissioners to guide Customs officers and help resolve any local-level implementation issues. Customs officials have also been asked to issue suitable public notices and standing orders explaining the procedure.
The move comes as the government seeks to facilitate raw sugar imports through the 10 lakh metric tonne TRQ, while ensuring that IGST paid by importers is properly recorded and eligible for input tax credit.
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Source : ChiniMandi
