Only Customs Authorities Can Levy Collect Igst On Goods Imported Into India Andhra Pradesh HC Read Order

The Andhra Pradesh High Court has clarified that Integrated Goods and Services Tax (IGST) on goods imported into India can only be levied and collected by customs authorities. This ruling came in response to a writ petition challenging the authority of state GST officers to collect IGST on imports. The court emphasized that the power to levy and collect IGST on imported goods is exclusively vested with the customs department, as per the relevant provisions of the IGST Act and the Customs Act. This judgment provides clarity on the jurisdictional aspects of IGST collection on imports, ensuring that businesses are not subjected to dual taxation or unwarranted demands from state GST authorities. Taxpayers should ensure that all IGST payments on imports are made through the customs portal and that they maintain proper documentation to avoid potential disputes.

Section 5 of the IGST Act, 2017, read with Section 3 of the Customs Act, 1962, governs the levy and collection of IGST on imported goods. These provisions stipulate that customs authorities are responsible for collecting IGST at the point of import. Non-compliance can lead to penalties, interest, and potential legal action under both the IGST and Customs Acts.

This ruling highlights the importance of understanding the division of powers between central and state tax authorities, especially in complex transactions like imports. Businesses should conduct thorough due diligence to ensure compliance with the correct statutory provisions and avoid potential disputes with tax authorities. This decision may lead to a more streamlined process for IGST collection on imports, reducing the compliance burden on businesses.

This ruling prevents potential double taxation and clarifies jurisdictional ambiguities for businesses involved in importing goods, ensuring compliance with the correct tax authorities.