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Importers of food, cosmetics to get refund on excess GST
Dec 07, 2017

Unsold inventory of imported chocolates, confectionery and cosmetics, which attracted 28% Integrated Goods & Services Tax (GST) during inbound shipments but are now retailing with an 18% levy, can claim refunds on the excess tax paid. 
We have told importers that if they have imported goods at 28% and are selling them at 18%, they can claim a refund, a senior official at the Central Board of Excise and Customs (CBEC) said. They will, however, have to submit proof. We understand they have issues related to stickers 
All imports face customs duty and IGST (CGST+SGST), unless specifically exempted. Last month, the GST Council had slashed tax slabs on 178 products, including chocolates, confectionery, deodorants and shampoo, from 28% to 18%. Almost all Indian firms have dropped prices in relevant categories after the cut. 
The reduction in GST rates for products imported at a higher rate may have some shortterm working capital impact on the importer. However, this can be adjusted against future sales, said Lalit Malik, chief financial officer at Dabur, which operates retail chain NewU and sells both Indian and imported cosmetics and personal-care products. Some of the imported products retailed at DaburBSE 1.01 % chains include Beauty Formula from UK and Spice Island from Sri Lanka. 

The Economic Times