Import of goods or services are treated as deemed inter-state supplies and are subjected to Integrated GST. Integrated tax is leviable in addition to the Customs Duties.
IGST on import of services is levied under IGST Act, 2017. IGST on import of goods is levied under Customs Act, 1962 read with Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of Customs are levied on the said goods under CA, 1962. Compensation Cess may also be levied wherever applicable.
The value for the purpose of levy of IGST would be assessable value plus Customs Duty.
Importer is not required to pay Customs Duty at the time of clearance of goods from a Customs Station to Warehouse.
Input Tax Credit of IGST paid would be available. ITC of Basic Customs Duty is not available.
The place of supply of goods imported into India is the location of the importer.
A service is said to be imported into India where the location of supplier is outside India, location of the recipient is in India and the place of supply of service is in India. The importer of services is required to pay tax on reverse charge basis
Import of service without consideration is not a supply. However, import of service for a consideration whether or not in the course or furtherance of business will be treated as supply. Thus, import of a service for consideration for personal use even though not used in the course of furtherance of business is supply.
Import of service by a taxable person from a related person or from a distinct person in the course or furtherance of business even if made without consideration is treated as supply.
Place of supply of service would determine whether service can be termed as import or export of service.