Leviability of IGST on high sea sales of imported goods and point of collection thereof
NO. CLE-HO/POL/GST/17-18
August 3, 2017
Members of the Council
Sub : Leviability of IGST on high sea sales of imported goods and point of collection thereof
Dear Member
The Central Board of Excise and Customs has issued a Customs Circular No. 33/2017 dated 1st August 2017 on the above subject. The following are the highlights of the circular.
a) IGST on high sea sale (s) transactions of imported goods, whether one or multiple, shall be levied and collected only at the time of importation i.e. when the import declarations are filed before the Customs authorities for the customs clearance purposes for the first time. Further, value addition accruing in each such high sea sale shall form part of the value on which IGST is collected at the time of clearance.
b) The importer (last buyer in the chain) would be required to furnish the entire chain of documents, such as original Invoice, high-seas-sales-contract, details of service charges/commission paid etc, to establish a link between the first contracted price of the goods and the last transaction. In case of a doubt regarding the truth or accuracy of the declared value, the department may reject the declared transaction value and determination the price of the imported goods as provided in the Customs Valuation rules.
Members may kindly note the above.
With kind regards
Yours sincerely
R. Ramesh Kumar
Executive Director