Page 88 - GSTL_16th July 2020_Vol. 38_Part 3

326 GST LAW TIMES [ Vol. 38
(2) The provisions of sub-section (1) shall apply in respect of all goods be-
longing to Government as they apply in respect of goods not belonging to
Government.
SECTION 15. Date for determination of rate of duty and tariff valuation
of imported goods. - (1) Rate of duty and tariff valuation, if any, applica-
ble to any imported goods, shall be the rate and valuation in force, -
(a) in the case of goods entered for home consumption under sec-
tion 46, on the date on which a bill of entry in respect of such
goods is presented under that section;
(b) in the case of goods cleared from a warehouse under Section
68, on the date on which a bill of entry for home consumption
in respect of such goods is presented under that section;
(c) in the case of any the goods, on the date of payment of duty:
Provided that if a bill of entry has been presented before the
date of entry inwards of the vessel or the arrival of the aircraft
or the vehicle by which the goods are imported, the bill of en-
try shall be deemed to have been presented on the date of
such entry inwards or the arrival, as the case may be.
(2) The provisions of this section shall not apply to baggage and goods
imported by post.
11. From a combined reading of the above provisions of the IGST Act,
2017, the Customs Tariff Act, 1975, and the Customs Act, 1962, it is evident that
the integrated tax on goods imported into India shall be levied and collected at
the point when duties of customs are levied on the said goods under Section 12
of the Customs Act, 1962 i.e. on the date determined as per provisions of Section
15 of the Customs Act, 1962.
12. We find that the issue has already been decided by Authority for
Advance Ruling, Kerala vide Order No. CT 12275/18-C3, dated 26-3-2018 in the
case of M/s. Synthite Industries Ltd., Ernakulam, Kerala [2018 (12) G.S.T.L. 395
(A.A.R. - G.S.T.)]. It was held that “the goods are liable to IGST when they are import-
ed into India and the IGST is payable at the time of importation of goods into India; The
applicant is neither liable to GST on the sale of goods procured from China and directly
supplied to USA nor on the sale of goods stored in the warehouse in Netherlands, after
being procured from China, to customers, in and around Netherlands as the goods are not
imported into India at any point.”
13. We find that in the context of ‘High Sea Sales’, Circular No.
33/2017-Cus., dated August 1, 2017 has been issued clarifying that sub-section
(12) of Section 3 of the Customs Tariff Act, 1975 specifies that all duties, taxes,
cesses etc shall be collected at the time of importation i.e. when the import decla-
rations are filed before the customs authorities for the custom clearance purpos-
es. The relevant portion of the Circular is reproduced below :
4. GST Council has deliberated the levy of Integrated Goods and Services
Tax on high sea sales in the case of imported goods. The council has decid-
ed that 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 addi-
tion accruing in each such high sea sale shall form part of the value on
which IGST is collected at the time of clearance.
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