• Custom duty with GST

I purchased One product from e-commerce website, My product parcel is at nearest post office from me as it is air parcel which come from China to India.My product purchase value was US $25.34 on 6 September 2018 . Now Post office want me to pay Rs.1271 to release product from their authority. They had shown me Assessment memo with Total amount due Rs. 1271, includes basic custom duty + GST etc .. Now what to do whether to pay or not & What precautions I have to take to avoid these type of retaintion. My supplier e-commerce site said it is matter of country side taxation, What exact way to get this product to me as I already received other products from same source without any extra payments or retaintion.
Asked 6 years ago in GST

See it's a normal thing our custom department works like this only generally if you get a product of value upto 50000 which says it's a gift you don't need to pay custom but it all depends on customs department. Sometimes they would ask you to pay custom sometimes they won't and you can't do anything.

So what you can do next time is when you get a product ask them to write above that it's a gift.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4303 Answers
101 Consultations

Hi,

- Are you sure, it is including custom duty and GST because dollar rate comes to Rs.50.15 (1271/25.34)?

- Might be other products are exempt from custom duty.

- Is there any threshold limit for the product imported by you?

Thanks

Vivek Kumar Arora
CA, Delhi
5015 Answers
1136 Consultations

Hi

Was the product price already paid to the seller?

Usually such amount of purchases are marked as gift items for which no custom duty is levied. However, since in your case custom department has applied custom duty, you will have to pay it.

The seller is correct. All the taxes including custom duty shall have to be paid by you. It's usually mentioned in their terms.

Lakshita Bhandari
CA, Mumbai
5687 Answers
942 Consultations

Hi,

You will have to pay it and supplier is also correct.

Next time,when you get a product ask them to mark that it's a gift.

Karishma Chhajer
CA, Jodhpur
2452 Answers
29 Consultations

Hi,

It is not correct.

You must have report the same.

Karishma Chhajer
CA, Jodhpur
2452 Answers
29 Consultations

Hi,

- Assessable value can be more than Invoice amount. Invoice is excluding all the above charges and assessable value is calculated at Indian customs as per the valuation rules of the customs.

- Either get them as gift or check if there is any threshold limit for such items in customs tariff.

Thanks

Vivek Kumar Arora
CA, Delhi
5015 Answers
1136 Consultations

Hi,

Hope you are doing well !

Assessable value can be more than Invoice amount. It is including all charges

Payal Chhajed
CA, Mumbai
5189 Answers
302 Consultations

Yes, your supplier is correct.

Payal Chhajed
CA, Mumbai
5189 Answers
302 Consultations

The seller is correct. All the taxes including custom duty will have to be paid by you.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

Assessable value can be more than Invoice amount and this case you will need to pay the custom duty.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

In case of post office they assess the value based on the exchange rate on the day package is received and not on the value you have ordered it.

May be you had received some discount and they have calculated assessable value on full MRP.

I can only give one suggestion from what I have seen and heard of people on social media and other places that custom on such packages is just a hit or miss thing one thing you can try to save tax is to ask the seller to mention on the package that it's a gift because on gift upto Rs. [deleted] I don't think there is any custom.

Thank you

Naman Maloo
CA, Jaipur
4303 Answers
101 Consultations

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