The main objective of any economy is development and trade plays an important role in achieving the objective of development. Imports are potential weapons for the development of an economy therefore, lawmakers had placed their specific sight on Imports. Considering the significance of Imports, various provisions of GST have been drafted in a way that would connect the path of development of a country.
Import of Goods/services
Imports under GST give a vast knowledge to understand how it influences the Imports carried out in India.
Some special import transactions
Let us know these special transactions in detail: –
- High Sea sales
High sea sale is a common trade practice whereby the original importer says Mr. A sells the goods to a third person, says Mr. B, before the goods are entered for customs clearance (Point P) i.e., High Sea Sale of goods. Now, the bill of entry is filed by the person who buys the goods from the original importer i.e., it is the liability of Mr. C to file the Bill of Entry.
2. Import of services with/without consideration
3. Import of ODIAR services
Online Information Database Access and Retrieval services (ODIAR) is a category of services provided through the medium of the internet and received by the recipient online without having any physical interface with the supplier of such services.
Examples of ODIAR services are:
Taxability of Import of OIDAR service is as under:
4. Ocean freight
As per serial no. 10 of notification no 10/2017 IGST (Rate) dated 26.08.2017 the recipient of goods, says Mr. X shall pay IGST under RCM on transportation services provided by the person located in the non-taxable territory through a vessel (Point A) up to the customs clearance station in India, say point B.
*However, in the case of M/s Mohit Minerals Pvt. Ltd. Gujarat high court has ruled out ocean freight stating the fact that RCM on ocean freight leads to double taxation and as the main motive of GST is to remove cascading effect of Tax. Hence, RCM is not applicable to Ocean freight.
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Posted by: CA Tarun Kapoor
AKGVG & Associates