Import Levy Collections Jump Over 18% In First Month Of GST

The collections from the Integrated Goods and Services Tax on imports rose over 18 percent in the first 21 days of July – the first month of the new indirect tax regime – a senior finance ministry official told BloombergQuint.

The IGST collected only from imports between July 1 and July 21 stood at Rs 14,136 crore, the official said. GST is levied on all imports into India, and unlike in the previous tax regime, states where the imported goods are consumed get their share of IGST on such goods.

In the pre-GST regime, many goods were exempted from levies on imports such as special additional duty and countervailing duty. Under GST, though, fewer items are exempt, the official said, leading to higher IGST collection.

The total collections from imports (including SAD, CVD, compensation cess and basic customs) under the GST regime was Rs 20,115 crore from July 1-21, the official cited above said. That compares with customs duty collection of Rs 16,959 crore in the whole of July last year, a jump of 18 percent.

According to the official:

• Collection from compensation cess levied on some demerit goods – cigarettes among others – was Rs 417 crore.
• Collections from CVD and SAD on GST-exempt goods was around Rs 629 crore and Rs 179 crore, respectively. for July 1-21 period. Currently, CVD and SAD is still levied on items which do not come under the ambit of GST such as aviation turbine fuel, petrol and diesel.
• Basic customs duty, which is levied in addition to IGST in the GST regime, accounted for Rs 4,754 crore during the period.

There are fewer customs duty exemptions under GST and some of the earlier exemptions may be brought back in some form or the other over a period of time, according to L Badri Narayan, a partner at tax and law advisory Lakshmikumaran & Sridharan.

Also Read: Mann Ki Baat: The Benefits Of GST Are Evident, Says Prime Minister Modi