‘Individuals need not obtain IEC to import for personal use’

We had filed an advance bill of entry before arrival of the vessel. Due to a fire in our factory, we want the imported goods to be deposited in a public bonded warehouse and cleared from there when our factory resumes normal operations. Can we request the Customs to allow that?

Yes. As per Section 46(5) of the Customs Act, 1962, “If the proper officer is satisfied that the interests of revenue are not prejudicially affected and that there was no fraudulent intention, he may permit substitution of a bill of entry for home consumption for a bill of entry for warehousing or vice versa”. So, you may request the Customs, and after getting permission, file a bill of entry for warehousing.

However, in such cases, the date of submission of the revised bill of entry will be the relevant date for determination of rate duty and tariff valuation. The Customs can refuse permission under Section 46(5) if the interests of revenue are adversely affected.

I want to import some items for my personal use as an individual. Is it necessary for me to obtain an Importer Exporter Code number (IEC), in my name?

No. As per Para 2.07(a)(iii) of Handbook of Procedures, Vol. 1 (HBP), persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture, are exempted from obtaining IEC. Para 2.07(b)(5) of HBP says that persons/institutions /hospitals importing or exporting goods for personal use, not connected with trade or manufacture or agriculture, must use the IEC IIHIE0153E, while importing the goods.

We have a charitable trust that besides a number of charitable activities also runs a hostel for students. The trust collects nominal rents from the students. Are we required to charge GST on such rent income?

CBEC Circular no. 32/06/2018GST, dated February 12, 2018, clarifies that “hostel accommodation services do not fall within the ambit of charitable activities as defined in para 2(r) of notification No. 12/2017-C.T. (Rate). However, services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation below one thousand rupees per day or equivalent are exempt. Thus, accommodation service in hostels including by Trusts having declared tariff below one thousand rupees per day is exempt. [Sl. No.14 of notification No. 12/2017-C.T. (Rate) refers]”.

We have imported some goods at concessional duty rates following the procedures prescribed in the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017. We are unable to utilise the goods. Can we reexport them?

Yes. Rule 7 of the said Rules allow re-export of such goods within six months from the date of import with the permission of the Customs authorities having jurisdiction over your factory. The value of such goods for re-export must not be less than the value of the said goods at the time of import.