New goods and services tax in India

The Indian government has introduced a new tax called the Goods and Services Tax (GST), effective 1 July 2017.

The Indian government has introduced a new tax called the Goods and Services Tax (GST), effective 1 July 2017.

This new tax will require the use of an Electronic Data Interface (EDI) for the submission of Customs declarations for import and export shipments. Customers shipping to India may experience delays in their shipments during the transition to this new process.

WHAT THIS MEANS

GST mandates a new Customs duty structure and declaration process that is expected to cause delays to express shipments as we transition to the new process:

  • All express transportation companies are expected to be impacted during this expedited transition to the new platform and process

  • "Samples" up to a value of INR 10,000/- continue to have duty exemption. The content description on the invoice of the sample must be well defined

Under the new process, DHL shippers need to provide the correct Integrated Goods and Services Tax (IGST) number of the importer, which they can obtain from the Indian importer:

  • The absence of an IGST number at the time of clearance may cause the package to be held at Indian Customs

  • Accurate ZIP Code and IGST number must be declared on Waybill and shipper invoice

This new tax will require the use of an Electronic Data Interface (EDI) for the submission of Customs declarations for import and export shipments. Customers shipping to India may experience delays in their shipments during the transition to this new process.

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