D
Deleted member 15865
Guest
But the ultimate consumer stil pays GST on the whole amount (which also has the customs duties costed in). Question is why?
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Urgent : Has anyone imported any AV gear in last 1 week
- Thread starter Vivek Batra
- Start date
But the ultimate consumer stil pays GST on the whole amount (which also has the customs duties costed in). Question is why?
panditji
Well-Known Member
We Indians have been cheating the govt since ages. Companies under invoice their goods and after paying customs sell the goods in cash and don't show sales thereby evading taxes... The reasons are numerous - goods destroyed, stolen, stored in warehouses due to no sales etc etc.. so this govt. has decided to levy GST at the time of import and that GST can be set off with the GST charged when the goods are actually sold to the end customer... This will force importers to show sales and hence file for GST which otherwise was done in cash...
Vivek Batra
Well-Known Member
Did you import something?
Yes (Audio Equipment)
You mean the 8-10%? Yes that much will be paid by the end customer. For instance a Rs.100 item will cost the importer Rs. 108-Rs110 and when he does value addition then the customer will pay Rs 108/110+ value addition amount+ margin of manufacturer + 18% gst (assuming item is in 18% bracket) - so in total he paid 8-10% + 18% in taxes. As to why? I have no idea. Panditji gave a good reason why.
BTW the biggest imports into India:
1. Petroleum products - not available here
2. Gold - available in limited quantities
Nothing can be done on above 2 items.
3. Third highest I read is electronics - specifically mobile phone parts and that is something which govt. can work on to reduce imports.
Cheers,
Sid
D
Deleted member 15865
Guest
It’s not fair to penalise tax payers for what tax evaders did in the past. The business importers get set off. It’s the consumer who has to pay the GST (in addition to customs) for something that was not made locally. And while the tax paying consumer who buys imported goods from the importer pays both, the tax evading consumer who brings the goods along with him evades both customs and GST.
keith_correa
Well-Known Member
What do you mean by "levelled"? If this is a typo and you mean "levied" then: CVD and SAD were done away with and were absorbed by GST.
If you do not mean "levied" then...
panditji
Well-Known Member
The govt. is already working full speed on the mobile phone parts bit and a huge number of mobile parts are now made in India instead of being imported...
keith_correa
Well-Known Member
The costing to the end consumer/dealer by the importer is done taking into account the input credit receivable. At least that is the way it SHOULD be done and that is the way I do it. Most do not and therein lies the problem.
The GST input credit concept is somewhat flawed because they collect upfront. What if the goods are not sold for an extended amount of time? To my knowledge, there is no interest paid by the government on the amount that is pre-collected by them. There is a provision to encash the credit but I confess, that I have not delved deep into that part. Typically one should pay a tax when a sale is made. I understand where the government is coming from when they decided to implement this but it is unfair and penalizes honest tax payers along with the dishonest (majority?).
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Spoke with a IAS friend, who handles customs, Gave a description of Audio DAC, she reverted back saying
"it comes under CTH 85437099 attracting 27.73 percent duty ( 7.5 BCD plus 18 GST)..."
Now I don't know how 77% was charged. I'm completely noob in this.
I don't know How having IEC will help us , Instead getting charged under the correct code matters. my DAC is coming in mid April, I'd be concerned if it goes above 50% in customs. Should I apply for IEC? Or having IEC means it's not for personal use and it will be charged ?
I had a impression that IEC is not required when,
Import/export of goods for personal use, which is not connected with trade, manufacture or agriculture.
"it comes under CTH 85437099 attracting 27.73 percent duty ( 7.5 BCD plus 18 GST)..."
Now I don't know how 77% was charged. I'm completely noob in this.
I don't know How having IEC will help us , Instead getting charged under the correct code matters. my DAC is coming in mid April, I'd be concerned if it goes above 50% in customs. Should I apply for IEC? Or having IEC means it's not for personal use and it will be charged ?
I had a impression that IEC is not required when,
Import/export of goods for personal use, which is not connected with trade, manufacture or agriculture.
Vivek Batra
Well-Known Member
Hi buddy
You are right about HS code. I applied IEC yesterday and gave it to DHL with new HS code. I am now waiting for some outcome. Fingers crossed. Can your friend help me out in some way? If this is not sorted
.
keith_correa
Well-Known Member
Top level HS Code:
There are lower level HS codes under this code for specific equipment and there is also an "Other" for equipment not falling under specifically mentioned descriptions.
| 8519 | Sound Recording Or Reproducing Apparatus |
There are lower level HS codes under this code for specific equipment and there is also an "Other" for equipment not falling under specifically mentioned descriptions.
Vivek Batra
Well-Known Member
On Friday, I applied applied for IEC and got it on mail and provided to DHL. They immediately revised to duty to 27.73% and revised the HS code and started the submission process which one would normally expect. Earlier they were using their own IEC or something.
As per latest update this morning, they are saying IEC is not valid and process is staled again.
My feeling is either DHL doesn't know how to process this or trying to extort money.
Today morning dhl customer care said I don't even need an IEC as it's a personal import. The clearance team and customer support are not in sync.
What one should do?
As per latest update this morning, they are saying IEC is not valid and process is staled again.
My feeling is either DHL doesn't know how to process this or trying to extort money.
Today morning dhl customer care said I don't even need an IEC as it's a personal import. The clearance team and customer support are not in sync.
What one should do?
generalxxxstark
Active Member
Have you verified the IEC with dgft website?
Other options would be to hire a CHA. They might take about 4 to 5k but it seems that DHL isn't up to the task.
Vivek Batra
Well-Known Member
As I applied it on last Friday, it still doesn't appear in "VIEW IEC" link. Might take a day or 2 to reflect on DGFT site.
generalxxxstark
Active Member
It takes about 3 business days. You might ask DHL to wait till Wednesday and retry.
There is also a helpline number on the website you may call to get its status.
Vivek Batra
Well-Known Member
Do I need the custom registration of IEC as well?
generalxxxstark
Active Member
Custom registration?
Vivek Batra
Well-Known Member
Yea. Register your IEC with customs.
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