Changes in Custom Duty after GST
Custom duty in India is a form of an indirect tax that is imposed by the Government of India on both export and import goods and services. Import duty is the tax that is imposed on the import of goods. Whereas, the tax imposed on the export of goods is called an export duty.
Previously there were multiple taxes implied such as state tax, central excise, service tax, value-added tax, etc. The tax system earlier was quite complex. These taxes were imposed on various goods and services. But then, the government of India brought a major change in the economy by introducing GST (Goods and Services Tax). GST is a new tax collection system. It is also known as a destination-based tax. Consumers are liable to pay GST when they use any goods and services. Now the situation is not as complex as it was before since these multiple taxes have been replaced by just one tax known as GST. It has three categories such as (Central Goods and Services Tax) CGST, (States Goods and Services Tax) SGST, and (Integrated Goods and Services Tax) IGST.
The concept of the custom import duty after GST is changed completely. IGST is the new form of Custom duty after GST; which means IGST tax is applicable now (along with other custom duties) on every import export data of goods and services.
Custom duty after GST in India:
Earlier, custom duty was applicable on all export and import of goods and services. In addition to this, the other taxes such as basic custom duty, anti-dumping duty, countervailing duty (CVD), and safeguard duty were also imposed on every import of goods and services. After the enforcement of GST, the entire tax system changed. All the indirect taxes such as central excise duty, service charges, and state-level tax are replaced by a single tax known as IGST (Integrated Goods and Services Tax). Custom Import Duty is a completely changed scenario that is not at all complicated. Now the consumers are liable to pay the IGST on the import of goods, along with the basic custom duty.
India import duty:
India’s import duty concept is a very wide and detailed phenomenon. Custom duty India is imposed on every product that is imported to India barring a few goods like lifesaving drugs, fertilizer, food grains, and equipment, etc. India import duty is a form of revenue for the country which is levied on the goods at the rates as per the Customs Tariff Act, 1975. As per this act, the rate of India’s import duty is 10% of the value of goods and services imported.
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