Gst on import of HS Code 44039990

I have a Import-Export sole proprietorship company registered in Kolkata. I have made an sale agreement with a company in Tuticorin to supply him round logs of south America origin. Port of loading will be in South America. I got advance from my client against PI I issued.
Now I made a buy agreement with a supplier in South America to import the material. My supplier gave me PI and I paid him advance as well.
Now supplier loaded the cargo in containers, gave me BL. Now I switched the BL and put my Kolkata company as supplier and Tuticorin company as buyer. Now I want to know whether I need to pay any taxes in India or not? As Tuticorin buyer will end buyer and he will discharge the cargo, hence GST & duties are payable by him only..? plz suggest.

Hi Md. Asif,

Thanks for sharing your detailed scenario. Let me break down the GST and customs implications for your import-export transaction involving HS Code 44039990 (round logs).

Your Setup Recap:

You have a sole proprietorship in Kolkata.
You bought round logs from South America, imported into India.
You issued a Proforma Invoice (PI) to your buyer in Tuticorin and received advance.
You bought from South America supplier and paid advance.
Cargo shipped and Bill of Lading (BL) issued.
You switched BL to show Kolkata company as supplier and Tuticorin company as buyer.
Tuticorin company is the final buyer who will clear and discharge cargo at Indian port.

1. Who is the Importer of Record?

Importer of record is the entity responsible for clearing the goods at Indian customs and paying customs duties, IGST on import, and other applicable charges.
Since the cargo is imported into India, GST and Customs Duty are payable at the port of entry (Indian Customs).
The importer of record is usually the party in whose name the Bill of Entry is filed.
In your case, if your Tuticorin buyer clears the cargo (i.e., imports in their name), then they are importer of record and responsible for GST & customs duty on import.
If the BL is switched to show your Kolkata company as supplier and Tuticorin company as buyer, the buyer (Tuticorin company) is importer and liable to pay IGST and customs duties on import.

2. GST & Customs Duty Payable

Customs duty (basic customs duty + cess + etc.) will be payable by the importer (Tuticorin company).
Integrated GST (IGST) on import is also payable on the assessable value by importer at customs.
If the importer is the Tuticorin company, then they pay IGST at import.
Your Kolkata company is supplying the goods domestically to Tuticorin company, so:
- If your Kolkata company has imported the goods and then sold to Tuticorin company, then you need to pay import duty and IGST at import.
- But if Tuticorin company is the importer of record (clearing goods themselves), then your Kolkata company is making a domestic supply to Tuticorin company and GST applies on this supply.

3. GST on Domestic Sale

Your sale from Kolkata company to Tuticorin company is a domestic supply, subject to GST at applicable rates (depending on product and place of supply).
You must raise a GST invoice on the Tuticorin buyer for this supply and pay GST accordingly.

4. Summary:

Aspect	Responsibility
Import Customs & IGST	Tuticorin company (importer of record)
GST on Domestic Sale	Kolkata company to Tuticorin company (your GST on supply)
Switching BL	No GST impact but affects importer of record

Important Points:

Ensure proper documentation of Bill of Entry and customs clearance.
Your sale invoice should reflect GST as per Indian GST law.
If you are only a facilitator and Tuticorin company imports directly, then you don’t pay customs or IGST on import.
If your Kolkata company imports and then sells, you pay GST on import and GST on supply to Tuticorin company (may get credit of IGST paid on import).