2 MARKS

1. Intra state supply of GST:

Intra-state supply under the Goods and Services Tax (GST) refers
to the supply of goods or services where both the supplier and the
recipient are located within the same state or union territory. This
means that the movement of goods or provision of services does
not involve crossing state borders.

2. Inter state supply of GST:

Inter-state supply under the Goods and Services Tax (GST)
pertains to the transaction of goods or services where the supplier
and the recipient are located in different states or union territories
within India. This involves the movement of goods or provision of
services across state borders, triggering the application of
integrated GST (IGST).

3. Composition Levy Scheme:

Composition Levy Scheme is an alternative method of levy of tax
designed for small taxpayers whose turnover for goods is up to Rs.
75 lakhs for special states and Rs. 1.5 crore for the remaining
states (Rs. 50 lakhs for services). The objective of the Composition
Levy Scheme is to bring simplicity and to reduce the compliance
cost for the small companies.
4. State the minimum and maximum rates of IGST.
Minimum rate - 0.25% Maximum - 28% for Goods.
Minimum rate - 1.5% Maximum - 28% for services.

5. State the minimum and maximum rates of CGST.

Minimum rate - 0.125% Maximum - 14% for Goods.
Minimum rate - 0.75% Maximum - 14% for services.

6. Define Incidental expenses and list out some examples.

Incidental expenses such as commission and packing charged by
the supplier or anything else done by the supplier in relation to the
supply at the time of or before delivery of goods or supply of
services must be added to the value.
Ex: Commission, Packing, Inspection or certification charges,
Installation and testing charges,Weighment charges, loading
charges,designing charges, etc.

7. Input Tax Credit:

Input tax credit (ITC) is a mechanism used in taxation systems,
particularly in Value Added Tax (VAT) or Goods and Services Tax
(GST) systems, where businesses can claim a credit for the taxes
they have paid on their purchases of goods or services used in their
business operations.It helps in reducing the tax burden on
businesses and promotes efficiency in the tax system.
Input tax credit means the credit of input tax [Section 2(63)].

8. Blocked credit:
Blocked credit refers to a situation where a person's access to
credit, such as loans or credit cards, is restricted or temporarily
suspended by a financial institution or creditor. When credit is
 blocked, the individual may be unable to make new purchases or
obtain additional loans until the issue causing the block is resolved
with the creditor or financial institution.

9. Safeguard duty in customs law:

Safeguard duty is product specific. The duty imposed under this
section shall be in force for a period of 4 years from the date of its
imposition and can be extended with the total period of levy not
exceeding 10 years. Safeguard duty shall not apply to articles
imported by a 100% EOU undertaking or a unit in a FTZ or in a
SEZ unless specifically made applicable.

10. Protective duties in customs law:

A duty imposed on imported goods for the protection of the
interests of any industry established in India on the
recommendation of Tariff Commission. It is effective only and
inclusive of the date, if any, specified in the First Schedule of the
Tariff.

10 & 20 MARKS
1. Import procedure.
The import procedure involves a series of steps to bring goods
from a foreign country into your domestic market. Here's a
breakdown of the key stages:

1. Pre-Shipment:
a. Research and Planning: Identify the product you want
to import, research regulations and restrictions, and find
a reliable supplier abroad.
 b. Proforma Invoice: Request a proforma invoice from
the supplier. This document details the product
description, quantity, value, and payment terms.
c. Import License: Depending on the product you're
importing, you may need to obtain an import license
from the relevant government agency.
2. Shipment:
a. Contract and Payment: Finalize the contract with
your supplier and arrange payment according to the
agreed terms. This may involve letters of credit or other
secure payment methods.
b. Booking Shipment: Work with a freight forwarder to
book shipping arrangements. Common options include
air cargo, sea freight, or land transport (for neighboring
countries). The forwarder will handle customs
documentation preparation.
c. Commercial Invoice: Receive a final commercial
invoice from your supplier. This detailed document
includes information like product description, HS code
(harmonized system code for classifying goods),
quantity, value, and incoterms (international
commercial terms that define responsibilities between
buyer and seller).
d. Packing List: Ensure you receive a packing list
detailing the contents of the shipment, including item
descriptions, quantities, and package
weight/dimensions.
3. Customs Clearance:
a. Import Declaration (Bill of Entry): File an import
declaration with customs authorities. This document
 details the shipment information from the commercial
invoice and packing list.
b. Customs Duty & Taxes: Pay any applicable customs
duties, taxes, and other customs fees based on the
product category and value.
c. Customs Inspection: In some cases, customs may
physically inspect the shipment to verify the declared
information and ensure compliance with regulations.
4. Delivery and Post-Import:
a. Release of Goods: Once customs clearance is
complete, you will receive your shipment.
b. Domestic Taxes: Depending on your location, you may
need to pay additional domestic taxes like sales tax on
the imported goods.
c. Compliance Records: Maintain copies of all import
documents for record-keeping purposes, as they may be
required for future audits.
5. Additional Considerations:
a. Insurance: Consider purchasing cargo insurance to
protect your shipment against damage or loss during
transportation.
b. Import Regulations: Always stay updated on import
regulations and restrictions for the specific product
category you're importing. These can change
periodically.
c. Brokerage Services: For complex imports, consider
using a customs broker to navigate the process and
ensure compliance.
 Following these steps will ensure a smoother import experience.
Remember, specific requirements may vary depending on your
location and the type of goods you're importing. Consulting with a
customs broker or relevant government agencies is always
recommended for the latest regulations and guidance.

2. Export Procedure:
Export Procedures under Customs Law:
Customs law plays a crucial role in regulating the flow of goods
across borders. Here's a breakdown of the export procedure within
the framework of customs law:
1. Pre-Export Compliance
a. Classification and Valuation: Exporters must ensure
their goods are correctly classified under the
Harmonized System (HS) code. This code determines
applicable duty rates and regulations in the destination
country. Additionally, exporters must declare the
accurate transaction value of the goods according to
customs valuation rules.
 b. Export Licenses and Permits: Certain goods may
require export licenses or permits from relevant
government agencies for national security,
environmental protection, or other reasons.
c. Export Declaration: Exporters are legally obligated to
file an export declaration with customs authorities. This
document details the shipment information, including
the HS code, value, description, and destination
country. It serves as a formal notification to customs of
the intended export.
2. Customs Clearance and Controls:
a. Documentation Review: Customs authorities will
meticulously review export declarations and supporting
documents (commercial invoice, packing list, certificate
of origin, etc.) to verify accuracy and compliance with
regulations.
b. Physical Inspection: In some cases, customs may
select shipments for physical inspection to ensure the
declared goods match the documentation and comply
with export restrictions. X-ray or other non-intrusive
inspection methods may also be employed.
c. Export Duties and Taxes: Depending on the product
category and trade agreements, exporters may be liable
to pay export duties or taxes before the goods are
released for shipment.
3. Post-Export Requirements:
a. Recordkeeping: Exporters are required to maintain
copies of all export documentation for a specified
period (usually several years) as per customs
 regulations. These records may be requested for audits
or investigations.
b. Electronic Export Information System (EEI): Many
countries utilize electronic export information systems
(EEI) where exporters submit export declarations and
supporting documents electronically. This streamlines
the process and facilitates data exchange between
customs and other government agencies.
4. Additional Considerations:
a. Export Prohibitions and Restrictions: Certain goods
may be prohibited or restricted from export due to
national security concerns, public health reasons, or
international trade agreements. Exporters must be
aware of these restrictions to avoid legal repercussions
and delays.
b. Dual-Use Goods: Goods with both civilian and
military applications may be subject to stricter export
controls. Exporters should consult with customs
authorities for guidance on handling dual-use goods.
c. Penalties for Non-Compliance: Failure to comply
with customs regulations can result in penalties,
including fines, seizure of goods, or even criminal
charges. Exporters are responsible for ensuring their
shipments adhere to all relevant customs laws.

By understanding these procedures and adhering to customs law,

exporters can ensure a smooth and compliant export process,
facilitating the international flow of goods.
3. Explain various duties of customs.
1. Basic Customs Duty (As per Sec 12 of the Customs Act, 1962):
Goods imported into India are chargeable to basic customs duty
(BCD) under Customs Act, 1962. The rates of BCD are indicated in
the I Schedule (for Imports) of Customs Tariff Act, 1975.
Generally, BCD is levied at standard rate of duty but if certain
conditions are satisfied (below), the importer can avail the benefit of
preferential rate of duty on imported goods. Conditions for availing
the benefit of preferential rate of duty:
a. Specific claim for preferential rate must be made by the
importer
b. Import must be from preferential area as notified by the Central
Government
c. The goods should be produced/manufactured in such a
preferential area.
2. Integrated Goods and Services Tax (IGST):
IGST (Integrated Goods and Services Tax) is a component under GST
law, which is levied on goods being imported into India from other
countries. It has subsumed various customs duties including
Countervailing Duty (CVD) and Special Additional Duty of Customs
(SAD).
In the GST regime, IGST will be levied on imports by virtue of sub -
section (7) of Section 3 of the Customs Tariff Act, 1975. IGST
wherever applicable, would be levied on cargo that would arrive on or
 after 1st July, 2017. It may also be noted that IGST would also be
levied on cargo which has arrived prior to 1st July but a bill of entry is
filed on or after 1st July 2017.
Similarly ex-bond bill of entry filed on or after 1st July 2017 would
attract IGST, as applicable. In the case where cargo arrival is after 1st
July and an advance bill of entry was filed before 1st July along with
the payment of duty, the bill of entry may be recalled and reassessed
by the proper officer for levy of IGST as applicable.
3. GST Compensation Cess:
Under the GST regime, Compensation Cess will be charged on luxury
products like high-end cars and demerit commodities like pan masala,
tobacco and aerated drinks for the period of 5 years in order to
compensate states for loss of revenue.
In the GST regime, IGST will be levied on imports by virtue of sub -
section (9) of Section 3 of the Customs Tariff Act, 1975.
GST Compensation cess, wherever applicable, would be levied on
cargo that would arrive on or after 1st July, 2017. Similarly ex-bond
bill of entry filed on or after 1st July 2017 would attract GST
Compensation cess, as applicable. In the case where cargo arrival is
after 1st July and an advance bill of entry was filed before 1st July
along with the payment of duty, the bill of entry may be recalled and
reassessed by the proper officer for levy of GST compensation Cess,
as applicable .
The value of the imported article for the purpose of levying GST
Compensation cess shall be, assessable value plus Basic Customs
Duty levied under the Act, and any sum chargeable on the goods
under any law for the time being in force, as an addition to, and in the
same manner as, a duty of customs. These would include education
cess or higher education cess as well as anti - dumping and safeguard
duties.
4. Protective Duties:
A duty imposed on imported goods for the protection of the interests
of any industry established in India on the recommendation of Tariff
Commission. It is effective only and inclusive of the date, if any,
specified in the First Schedule of the Tariff.
 5. Safeguard Duty:
Safeguard duty is product specific. The duty imposed under this
section shall be in force for a period of 4 years from the date of its
imposition and can be extended with the total period of levy not
exceeding 10 years.
Safeguard duty shall not apply to articles imported by a 100% EOU
undertaking or a unit in a FTZ or in a SEZ unless specifically made
applicable.
6. Countervailing Duty on Subsidized articles:
Duty levied if the articles are imported into India by getting the
subsidies from other countries.
The amount of countervailing duty shall not exceed the amount of
subsidy paid.
It shall be in force for a period of 5 years from the date of its
imposition and can be extended for a further period of 5 years. It has
been subsumed under GST.
7. Anti-dumping duty:
It is imposed on imports of a particular country. Where any articles
exported by an exporter to India at less than its normal value, then,
upon the importation of such articles into India, the Central Govt.,
may impose an anti-dumping duty.
8. Export Duties as per 2nd Schedule of Customs Tariff Act, 1975:
a. Export duty @ 10% on De Oiled Rice Bran (Grade 1)
– used for Poultry/Cattle/Fish feed manufacturing.
b. Export duty @ 25% on luggage leather.
c. Export duty 15% Ferrous waste and scrap.
d. Export duty @ 15% on Leather.
e. Export duty 10% on Snake skins.
f. Export duty 10% on raw fur lamb skins.

3. Explain various returns that come under GST.