This Tax Alert summarizes a recent Circular issued by Central Board of Indirect Taxes and Customs (CBIC) on Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 (IGCRS Rules). These rules supersede the existing Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 (IGCR Rules).
The key clarifications are as follows:
- Basic contours of IGCR Rules
have been retained. Changes made are to broaden the scope of IGCR and
capture additional useful data fields in forms.
- The scope of IGCRS Rules is
widened to include cases where imported goods are utilized for specified
end use which can be other than manufacturing or providing output
services.
- Where time period for
utilization of goods is specified in respective notifications, the said
period will apply. If the same is not specified, time period of six months
will apply. Jurisdictional Commissioner can extend such period by another
three months in cases where the delay in utilization is beyond importer’s
control.
- Procedures have been prescribed
for immediate re-credit of Bonds by jurisdictional AC/DC, rather than
waiting till the time of filing the monthly statement.
Comments:
- CBIC had introduced simplified
system-based procedure for IGCR rules through ICEGATE portal. It is
expected that new IGCRS rules would help in achieving complete automation
of the procedure involved.
- Additional data fields
prescribed under IGCRS rules would help tax authorities to check and
monitor the end use of imported goods.
- Enabling extension of time
period for utilization of goods and immediate re-credit of bond are
taxpayer-friendly measures and a welcome move.
- Presently, we understand that
there are practical challenges in implementing IGCR rules in ICEGATE
portal. The same needs to be addressed by Government for effective
implementation of IGCRS rules.
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