Background:
The GST Council’s 49th meeting was held in Delhi on February 18, 2023 under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council has inter-alia made the recommendation to affix a device like tag – tracking device or data logger on a container, so that no separate IGST shall be levied on such affixed device and the ‘nil’ IGST treatment to such affixed device on the containers shall also be available, subject to the existing conditions.
Notification:
Now, the CBIC vide Notification No. 14/2023-Customs dated February 28, 2023 has issued amendments in Notification No. 104/94-Customs dated March 16, 1994 (“Notification No. 104”), which provided exemption to containers of durable nature, in order to align with recommendations of the 49th GST Council Meeting held on February 18, 2023, in a following manner:
- New explanation has been inserted in Notification No. 104, which reads as below:
“Explanation.- A device such as tag, tracking device or data logger already affixed on the container at the time of import shall also be eligible for exemption from the duty of customs and the integrated tax as is available to the said container under this notification.”.
The Notification can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1009655/ENG/Notifications