“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 decided 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 addition accruing in each such high sea sale shall form part of the value on which IGST is collected at the time of clearance.”

Though this circular clarifies on the incidence of levy of IGST, one aspect that requires further clarity is whether the sale by the importer to the Indian buyer would be an “exempt supply” warranting the reversal of proportionate input tax credit availed.

Click to view CBEC Circular No. 33 /2017-Cus, dated the 1st August, 2017