Central Board of Indirect Taxes and Customs ( CBIC ) issued a Notification No. 14/2023-Customs dated February 28, 2023 allowing exemption on affixed tracking devices on the containers at the time of import.
The notification was based on the recommendation of the 49th Goods and Services Tax ( GST ) council meeting presided by the Union Finance Minister Nirmala Sitharaman held on February 18th 2023.
The following explanation shall be added to the aforementioned notification after the second proviso, specifically:
“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.”
It was advised by the GST council to attach a device to a container, such as a tag, tracking device, or data logger, so that no separate Integrated Goods and Services Tax (IGST) would be assessed on the attached device and it should be exempted from the tax, subject to the pre-existing requirements.
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