The Finance Ministry has issued instructions for smooth implementation of the revised Customs rules that facilitate availing of end-use based notifications. The regulations to streamline the procedures for conversion of shipping bills from one export promotion scheme to another have been notified. Under the goods and services tax (GST) laws, e-inv­oicing is made mandatory for all the taxpayers with a turnover exceeding Rs 20 crore from the beginning of next month.

Many Customs notifications allow imports at lower or nil rates of duty, specified goo­ds for use in the manufacture of specified products. To ens­ure that the goods imported under such notifications are used for the specified purposes, the Customs (Import of Goods at Concessional Rate of Duty) Rules 1996 (IGCRR) were notified. When GST was implemented, these rules we­re replaced by new ones with the same name followed by the year 2017. On the Budget day last month, the Customs (Import of Goods at Conces­sional Rate of Duty) Rules 2017 were amended with a view to allow submission of the necessary details electronically, standardization of forms and monthly returns for electronic submission, inter-unit transfer of imported goods, etc. The amendments have come into effect from March 1 after suitable changes in the software. The Customs portal icegate.gov.in has given a step-by-step advisory on how to generate IGCRR Identification Number (INN) and proceed with other formalities. The CBIC circular (no.4/2022-Cus dated 27th February 2022) explains the procedures and gives two weeks of transition time for the importers to understand and comply with the new system. The circular says that for export-oriented units, the existing procedures will continue till the system architecture is suitably developed. The introduction of end-to-end automation of the entire process will help the importers significantly.

Conversion of shipping bills from one export promotion scheme to another is now being allowed in accordance with CBIC circular no.36/2010-Cus dated September 23, 2010. Courts have held the time limit of three months for filing the application for conversion prescribed in that circular as incorrect because Section 149 of the Customs Act, 1962, stipulates no such time limit. So, the government has now notified the Shipping Bill (post export conversion in relation to instrument-based scheme) Regulations, 2022. These regulations envisage time limits of six months for application with provisions for two more extensions of six months each. They also prescribe the conditions and restrictions for conversion of shipping bills in a very complicated and confusing manner. These regulations shall apply to shipping bills or bills of export filed on or after the date of publication of these regulations in the Official Gazette. It is not easy to understand the language used in these regulations. It would, therefore, help if the CBIC issues a suitable circular to help the exporters comply with the requirements.The electronic invoice (e-invoice) system was introdu­ced under the GST laws from October 1, 2020, for taxpayers having a turnover of over Rs 500 crore. Later, it was extended to taxpayers having a turnover exceeding Rs 100 crore from January 1, 2021, and to taxpayers having a turnover exceeding Rs 50 crore from April 1, 2021. Now, the government has extended the e-invoicing system to taxpayers having a turnover of over Rs 20 crore from April 1, 2021. The decision will be welcomed widely because e-invoicing has made life easier for taxpayers and tax administrators.