Mihir Ajit Shah
No IGST on Ocean Freight under RCM for Importers from 01.10.2023
The Goods and Service Tax (GST) had provided 5% IGST on services of “Transport of goods in a vessel including services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India”
The GST Notificaiton No. 10/2017 – Integrated Tax (Rate) also made the tax payable on Reverse Charge Basis (RCM) vide sr. no. 10 of the notification in hands of Importer as defined under the Customs Act, 1962
Now, in response to various legal cases and Supreme Court judgement in the matter, the government has notified to omit the entry at sr. no. 10 from the above notification of RCM.
GST Notification No. 13/2023 – Integrated Tax (Rate) dated 26.09.2023 has been issued for the same. The notification would come into force from 01st October, 2023.
Thus, providing a relif to the importers from paying IGST on Reverse Charge Basis on the ocean freight component especially under CIF / CFR contracts.
It must be noted, However, Importer still has to pay IGST at the time of Import along with other Import duties at the time of filling Bill of Entry when goods are imported into India.
Importers may refer the notifications for further details.
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DGFT extends RoDTEP Scheme for exports upto 30.06.2024
It may be recalled that from 1st January 2021, a New Scheme Called Remission of Duties and Taxes on Exported Producted (RoDTEP) came in to exsistance.
The rates were decided by the RoDTEP Committee and a 1st list of RoDTEP rates vide Appendix 4R were annouced on 17.08.2021.
It must be noted that not all products / HSN are covered under this Scheme.
Subsequently, on 07.12.2022 vide Notification No. 47/2015-2020 additional HSN codes espcially from chapter nos. 28,29,30 & 73 were added in RoDTEP Appendix 4R.
However, the Notifcation stated that theses benefit would be provided for exports from 15.12.2022 to 30.09.2023 only.
Now, DGFT vide Notificaiton No. 33/2023 Dated 26.09.2023 has extended the said RoDTEP benefits on all items covered under RoDTEP from 01.10.2023 to 30.06.2024.
The Notificaiton can be donwloaded from the link below:
https://content.dgft.gov.in/Website/dgftprod/4abb1a55-715c-49a3-8434-6d537dbcdb83/Notification%20No.%2033%20dated%2026%20Sep%202023%20English.pdf
This exetension is subject to budgetary framework under para 4.54 of FTP2023.
It must also be noted that there are still many ineligible supplies / items and categories of exports which are not entitled for RoDTEP Scheme. Para 4.55 of FTP 2023 may be referred.
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DGFT clarifies issues related to “Pre-Import Condition” under Advance Authorisation
This is with reference to a specific period from 13.10.2017 to 09.01.2019, where the imports under Advance Authorisation Scheme with IGST Exemption were under “Pre-Import Condition”. The said condition is no more applicable.
There have been issues with various RA’s for certain export-import scenarios in respect of applicablity of the said “Pre- Import Condition” for Advance Authorisations issued in the said period.
DGFT Vide Trade Notice No. 27 Dated 25.09.2023 has clarified the same.
The Trade Notice has clarified 4 specific scenarios and the applicablity of the “Pre Import Condition” being not violated in each of the cases.
Exporters may download & refer to the said Trade Notice from DGFT Website from link below
https://content.dgft.gov.in/Website/dgftprod/a44faa69-c408-417e-ad61-679c4c7f92a0/Trade%20Notice%2027.pdf
The circular also states that cases which could not meet the ‘pre-import condition’ may be regularized by making payments as prescribed in the Customs Circular No. 16/2023 dated 07.06.2023
The clarification will certainly help exportes and the RA’s to close the pending cases at the earliest.
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De-Listing of Authorised Agencies to issue of CoO (NP)
DGFT had requested to all the Authorised Agencies enlisted under Appendix 2E of FTP 2023 who are still not on board of the e-CoO platform to complete their on boarding process by 31.08.2023.
Now, in continuation to the previous Trade Notices, 29 Agencies from the said list
(Appendix 2E) have not on boarded themselves and thus, with immediate effect get delisted from Appendix 2E and will not be authroised to issue the Certificate of Origin (NP).
Exporters may refer to the Public Notice No. 31/2023 Dated 20.09.2023 to check the list of the de-listed agencies.
The Public Notice can be downloaded from the link below:
https://content.dgft.gov.in/Website/dgftprod/3fe56f91-cbbb-41d2-8a3e-23d25791b45e/Public%20Notice%2031-%20english.pdf
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Export Policy of Food Supplements for UK and EU
DGFT vide Notification No. 31/2023 Dt. 11.09.2023 has revised the export Policy conditions for export of Food Supplements containing botanicals under ITC HS 1302 and 2106 intended for human or animal consumption to EU or UK,
Now, vide the updated notificaiton, exports to EU or UK will require Official certificate by EIC/EIA or SHEFIXIL.
SHEFIXIL is allowed to issue an official certificate for period of 3 Months from the date of issuance of this notification.
The DGFT Notification can be downloaded from the link below:
https://content.dgft.gov.in/Website/dgftprod/cd58a000-b3bf-4c3d-bf2b-77be6c896845/DGFT%20Notification%20No%2031-2023-%20English.pdf
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