Import under GST refers to the bringing of goods or services into India from a foreign country. Under the Goods and Services Tax (GST) system, import is treated as a taxable event, meaning that GST is applicable on the value of goods or services imported. This ensures that imports are subject to the same tax structure as domestic supplies, maintaining fairness in taxation.
When a business imports goods or services, it must pay Integrated GST (IGST) on the transaction at the time of customs clearance. This tax can often be claimed as input tax credit, helping reduce the overall tax burden on the business. For small business owners and first-time entrepreneurs, understanding import under GST is important for accurate tax compliance and cost management.
Practically, import under GST affects how businesses handle customs duties, GST filings, and input tax credit claims. Correctly accounting for imports ensures compliance with GST regulations and avoids penalties. It also impacts business registration requirements if the business is engaged in regular import activities.
For detailed guidance on GST compliance, including import-related obligations and filings, businesses can refer to resources like FinTax24 GST Solutions, which provide expert support tailored to Indian tax laws.