Latest news with #CentralBoardofIndirectTaxesandCustoms
Time of India
3 days ago
- Business
- Time of India
Jalna dry port achieves customs port designation, Infra News, ET Infra
Advt The Central Board of Indirect Taxes and Customs (CBIC) has granted customs port status to the Jalna dry port for import and export operations , aimed at boosting trade and industry in the Marathwada region of development will allow the dry port ( inland container depot ) to handle imports, exports and other customs-related processing development will allow the dry port (inland container depot) to handle imports, exports and other customs-related processing activities. The notification, issued on Monday by Under Secretary Supriya Chandran, has been published in the Gazette of located near the Delhi-Mumbai Industrial Corridor (DMIC) and along the major national transportation routes, the Jalna dry port has been developed by the Jawaharlal Nehru Port Trust (JNPT). It is currently maintained by a Nagpur-based company and has steadily emerged as a key inland trade not a seaport, the facility enables customs clearance and storage of goods before they are transported to and from major ports like Mumbai port and JNPT via road and the first phase, a multi-modal logistic park of Rs 327 crore will be developed by the Nagpur-based company at the dry port, an official said."This is a major boost for local businesses and the Marathwada region," Jalna Steel Association president Ghanshyam Goyal said.
Mint
3 days ago
- Business
- Mint
Centre eyes tighter customs rules to curb smuggling by ‘import carriers'
New Delhi: The central government is working on a strategy to dismantle a sophisticated, illicit network of so-called 'import carriers' at India's bustling airports and seaports, according to two people aware of the matter who spoke on the condition of anonymity. Import carriers–who may masquerade as regular Indian tourists going abroad, some may even have special privileges–smuggle in goods beyond permissible limits or which may be banned in the country. They bring in items like gold, toys, electronics and the like from overseas, bypassing customs checks, and pass the goods on to other entities in the country for commercial use. To curb this practice, the commerce ministry plans to ask the finance ministry to direct the CBIC (Central Board of Indirect Taxes and Customs) to update baggage rules in the Customs Act, without causing any inconvenience to regular passengers, the people cited above said. Read more: Storm in a teacup: Should Indian workers in the UK be exempt from payroll tax? Current regulations allow Indian residents to bring in goods from overseas worth up to ₹50,000 duty-free, and up to ₹1,00,000 from some West Asian countries, beyond which customs duty applies. Further, under the Customs Act, 1962, passengers must declare dutiable or banned goods and can hand over bags for clearance. Using these rules for commercial imports is illegal, and can lead to confiscation or penalties. Measures being discussed include making declarations more detailed, placing a cap on how often passengers—especially frequent flyers from trade hubs like Dubai, Hong Kong, and Guangzhou—can avail duty-free allowances annually, and enhancing the existing Atithi app's digital customs declaration system with AI-based profiling and stricter tracking, the persons cited above said. The Atithi app, launched by the CBIC in November 2019, enables international travellers to electronically file customs declarations for dutiable items and currency in advance, streamlining the customs clearance process upon arrival in India. 'Most of the goods moved through the import carrier network are sourced from trade hubs of China and Dubai, with electronics and gold being the top items particularly on flights originating from Hong Kong, Guangzhou, Shenzhen, and Dubai," said the first person cited above. 'There are also discussions to increase collaboration with airport authorities and customs field formations to flag repeat offenders and prevent this backdoor route from being used for commercial gain." 'We have identified certain products such as electronic items, toys, luxury goods, garments, and gold to be brought under review," said a second person aware of the matter. Queries sent to the ministries of commerce, finance, and civil aviation remained unanswered till press time. How the import carrier network works Let us illustrate how import carriers work with an example. Say, a toy shop owner wants to sell Chinese toys in Delhi, which cannot be legally imported. The shopkeeper would pay a customs handling agent–a private employee–to facilitate the illicit import, who would in turn pay an import carrier (or more) to visit China as a tourist and bring in the toys as part of personal baggage. Once the trip is over, the toys brought in go back through the network and land in the toy seller's shop. Each such import carrier makes multiple trips, multiplying the volume and value of undeclared goods sneaked into the country. An industry executive who requested anonymity said that import carriers are so well-trained that they can bring in goods without any checks and have them delivered directly to homes, offices, or warehouses. Read more: Energy security: India needn't be staring at a $1 trillion import bill 'It is a known fact that the import of toys from China is completely banned, yet Chinese toys can be easily found in many parts of the country," this executive said. 'This is all happening through these import carriers, which is harming our domestic manufacturing ecosystem and causing significant revenue loss." 'There is an immediate need for government intervention to curb such illegal trade practices, which are harming the domestic manufacturing ecosystem and resulting in significant revenue loss to the exchequer," said C.K. Govil, president of The Air Cargo Agents Association of India, while adding that Prime Minister Narendra Modi's focus on domestic manufacturing would gradually diminish such illegal practices. However, experts are of the view that if India adopts a more liberal trading regime with lower tariffs and fewer restrictions, it could not only reduce the incentive for smuggling but also improve enforcement focus. 'A liberal trading regime with most of the world would put most smugglers out of business," said Rahul Ahluwalia, founder and director of the Foundation for Economic Development (FED), a policy think tank. 'We would also be able to focus enforcement capacity on truly dangerous contraband instead of turning normally traded goods into contraband." High-profile cases To be sure, the modus operandi is not only being used by regular folks, but also by celebrities and people with access to diplomatic channels. One such instance is the case of Kannada actress Ranya Rao, also known as Harshavardini Ranya, who was arrested at Bengaluru airport on 3 March 2025, for allegedly smuggling 14.2 kg of gold from Dubai. According to a report by The Indian Express, she used the US passport of her associate and co-accused, Telugu actor Tarun Raj Konduru (alias Virat Konduru), to bypass Dubai customs checks and move the gold into India. In another case, Shiv Kumar Prasad, a former personal assistant to Congress MP Shashi Tharoor, was held at Delhi's IGI Airport in May 2024 for allegedly receiving gold worth ₹35.2 lakh from a passenger arriving from Bangkok. He reportedly used his official Aerodrome Entry Permit to facilitate the illegal transfer. In another case in 2020, Swapna Suresh—a former UAE consulate employee and consultant to the Kerala IT department—was arrested after 30 kg of gold was found in diplomatic baggage. Exact figures on illegal imports into India are unavailable, but reports reveal significant scale. The Directorate of Revenue Intelligence seized over 1,300 kg of smuggled gold in 2023-24, while industry estimates suggest around 700 kg of gold is smuggled daily, causing annual losses of nearly $10 billion. Electronics and luxury goods are also commonly smuggled, with recent seizures at Mumbai airport worth crores. India's trade deficit with China surged to a record level in the fiscal year ended 31 March, almost touching the $100 billion-mark. India exported goods worth $14.25 billion to China in 2024-25, and imported $113.45 billion worth of goods. While the exports have dipped 14.4% year-on-year, imports have jumped 11.5%, according to data from the commerce ministry.
Mint
7 days ago
- Business
- Mint
Govt relaxes rules to boost GST registration among small businesses
New Delhi: The number of micro, small, and medium enterprises (MSMEs) with Goods and Services Tax (GST) registration is set to rise after the Central Board of Indirect Taxes and Customs (CBIC) asked its officials to relax scrutiny for such businesses, according to two people aware of the development. MSMEs contribute around 30% of India's GDP. CBIC's move comes after MSMEs raised concerns about excess and non-uniform scrutiny in the registration process during stakeholder consultations with the MSME ministry and CBIC, the people the meeting, CBIC asked its registration officials to reduce physical verification and complete the process in seven days if the business is not found to be risky during the common analysis. Also read: Should you register for GST? Here's everything you need to know.'After the consultation, CBIC has issued guidelines to its officials to make the registration process easier for businesses. MSMEs are likely to be beneficiaries of these directions," said one of the persons cited above. Businesses with an annual turnover of ₹40 lakh for goods and ₹20 lakh for services are required to register for GST and obtain a GST Identification Number (GSTIN). No standard procedure According to a copy of the CBIC order dated 17 April, which Mint has reviewed, businesses said GST officers had sought additional documents along with the GST REG-01 form, the first step in registering for GST. These documents were not a part of the list of documents to be appended with the form, they said.'It is noted that varied practices are being followed by the officers in respect of verification of documents and details provided in FORM GST REG-01. It has also been observed that while processing the application, avoidable clarifications are being sought by the officers, leading to delay in getting registration as well as rejection of applications," the CBIC order said. These clarifications were related to things like proof of principal place of business, constitution of business, and identity details of the authorised signatory, the order said.'While on one hand there is a need to prevent registration of fraudulent firms created for passing on input tax credit (ITC) without any underlying supply, on the other hand, there is a need to ensure that genuine applicants seeking registration are not unduly harassed," read the order. 'Seek minimum documents' Now, officers have been told to seek the minimum number of documents required for GST registration. For instance, to prove that an entrepreneur is starting a business on a property owned by them, GST officers will only seek the latest property tax receipt, municipal khata copy, or copy of the electricity bill, and any one these is enough for proof, said the order. For businesses that operated from rented premises, a copy of the rent or lease agreement along with a copy of the property tax receipt, municipal khata copy or electricity bill copy is sufficient, it added. In cases where the GST officer has sought a valid clarification in an applicant's registration, the applicant has seven days to to respond, and the GST officer must accept or reject the application within seven days of receiving the clarification, the order said. Skewed GST contributions The contribution of various types of businesses to GST revenue is highly skewed, according to data released by the government seven years after GST was implemented. It showed that as of June 2024, publicly listed companies, which comprised about 0.5% of taxpayers, contributed a little over 34% of GST revenue, while proprietorships, which comprised about 80% of taxpayers, contributed just 13.3%, and partnerships, which comprised 10% of taxpayers, contributed 7.31%.India's 6.4 crore MSMEs are mostly proprietorships or partnerships. Also read: Tax rate revamp on GST Council agenda; India to push FATF to grey list Pakistan The streamlining of GST registration is likely to make the process easier for such companies and increase their contribution to GST revenue, said Vinod Kumar, president of India SME Forum, an industry association. "But the implementation needs to be comprehensively followed across states. There are issues faced by MSMEs in selling their goods and services between states," he said. 'While the CBIC has taken a progressive step through this circular, its full implementation effectiveness would be enhanced through complementary circulars from state GST authorities. A synchronised approach across central and state jurisdictions would help achieve the intended objective of a streamlined registration process. We look forward to aligned directives from state authorities to ensure uniform implementation of the circular," he added. Hurdles for small businesses Mint reported in March that while registering for GST as a freelancer or small business owner seems simple on paper, it is much more complicated in reality. That's because GST officers often ask for additional allied registrations, such as shops and establishment licences, MSME Udyam certificates and no-objection certificates, among other things, though these are not mandated by law. This makes the process tricky for sole proprietor businesses, such as freelancers or those running an inventory-free e-commerce platform, as they may not even qualify for some of these certificates or licences. Also, standard operating procedures related to GST registration are not well defined, and the on-ground practices followed vary from jurisdiction to jurisdiction, Ranjeet Mahtani, partner, Dhruva Advisors told Mint at the time. 'Consequently, the documentation requirements vary depending on the GST officer handling the case." This means applicants will only know what extra paperwork is needed once the officer raises an enquiry, causing unexpected delays. 'These practical challenges often lead to confusion, delays and additional compliance burdens," Vijaykumar Puri, partner at VPRP & Co LLP, Chartered Accountants, told Mint at the time. Also read: Why 'record' gross GST collections in April don't tell the full story
Fashion United
20-05-2025
- Business
- Fashion United
Textile crisis between India and Bangladesh: Inside a logistical lockdown
By blocking imports of Bangladeshi garments via land, India is indirectly closing off its neighbour's access to its ports and airports, which are essential for its global exports. The decision appears to be a form of diplomatic retaliation. On May 17, 2025, India announced the suspension of several Bangladeshi imports via its land border posts, including ready-to-wear garments. This sudden measure, reported by The Times of India, had an immediate effect. More than 30 lorries transporting garments were stranded in the neutral zone between Benapole (Bangladesh) and Petrapole (India), with an estimated value of 560,000 euros. The ban also concerns other products, such as eggs, fish, onions and mustard seeds. However, it is the impact on the textile sector, the backbone of Bangladeshi exports, that is of greatest concern. In 2024, over a third of exports to India passed through these land corridors, before being redirected to ports such as Haldia or Jawaharlal Nehru (Mumbai) for shipment to Europe or the US. A logistical measure with strong political undertones This decision did not come out of nowhere. It extends a movement that began in April, when New Delhi removed a transhipment facility granted to its neighbour since 2020. Thanks to this bilateral agreement, Bangladeshi exporters could transit via Indian ports and airports to ship their products to third-party markets, without entering the Indian market or passing through local customs. This logistical facility, which is strategic for Bangladesh, served several objectives. It relieved the overloaded port of Chittagong, shortened shipping times to Western markets, and offered a competitive alternative to sometimes-failing local infrastructure. The textile sector, which accounts for over 80 percent of Bangladeshi exports, was the main beneficiary. New Delhi justifies its about-face for technical reasons. These include the overloading of its own infrastructure, prioritisation of Indian exporters, and the need for better 'customs clarity', according to a notice published by the Central Board of Indirect Taxes and Customs (CBIC). However, many analysts see it as a disguised political move. Pressure on Dhaka and strategic repositioning Behind this technical decision lies a logic of power. Bangladesh is currently governed by an interim authority led by the economist Muhammad Yunus. In an institutional context marked by political fragility and internal tensions, New Delhi seems to be taking advantage of the situation to assert its regional influence. This imbalance reinforces its diplomatic room for manoeuvre, as bilateral relations have become strained in recent months, particularly around infrastructure projects supported by Beijing in Bangladesh. The land ban acts as an indirect lock. Officially, India has not closed its ports to Bangladesh. However, by blocking the land transport of cargo to these infrastructures, it makes access almost impossible. Without another rapid logistical solution, Bangladeshi companies are forced to reorganise their entire export chain. A blow to the Bangladeshi textile industry For textile manufacturers in Bangladesh, the situation is critical. Sea freight via national ports (Chittagong or Mongla) is slower, more expensive, and often congested. Direct air freight to Europe or North America, meanwhile, is economically inaccessible for most small to medium-sized enterprises in the sector. 'This decision risks causing delivery delays, contract breaches and a loss of international competitiveness,' warned a representative of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), quoted by The Economic Times. The consequences could also be felt by Western brands, customers of Bangladesh, particularly in fast-moving segments or e-commerce deliveries. In India, industrialists are divided On the Indian side, the measure has been met with mixed reactions. While some textile manufacturers welcome the reduction in low-cost foreign competition, distributors and retail chains are concerned. Bangladesh remains a major supplier of entry-level clothing, popular with Indian consumers with low purchasing power. In the event of shortages, prices could soar for certain items. 'In the short term, local producers will benefit. However, in the medium term, this risks creating an imbalance in the domestic market,' admitted an executive at the Apparel Export Promotion Council (AEPC), also quoted by The Economic Times. A step backwards on regional integration? This logistical disruption also raises the question of the future of regional cooperation. Since 2010, India and Bangladesh have increased trade facilitation agreements, driven by a vision of South Asian economic integration. The unilateral suspension of these facilities, without notice, risks eroding mutual trust. The Bangladeshi authorities have expressed their 'serious concern' and have begun discussions with New Delhi. However, the prospects for recovery seem slim in the immediate future. Especially as alternatives are limited. Routes through China or Myanmar are politically and logistically riskier, while Sri Lankan ports remain poorly connected to the Bangladeshi land network. A crisis with global side effects? As the global textile industry remains fragile, in a context of cost inflation and time pressure, this decision could have repercussions far beyond South Asia. European and North American brands, dependent on Bangladeshi factories, could experience delays in the autumn/winter 2025 collections, or even revise their sourcing strategy if instability persists. In the long term, the suspension of land transit by India could mark a turning point. It highlights the fragility of international logistics chains in the face of geopolitical decisions, but also the need for exporting countries such as Bangladesh to strengthen their port autonomy and trade resilience. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
The Hindu
18-05-2025
- Sport
- The Hindu
CBIC Chennai Outer Commissionerate organises Cyclathon as a part of pre-GST Day celebrations
The Chennai Outer Commissionerate of the Central Board of Indirect Taxes and Customs (CBIC), in association with the Fit India Movement, on Sunday organised a Cyclathon on the theme #SundaysOnCycle to promote health, fitness, and environmental consciousness. According to a press release, this Cyclathon, a part of the pre-Goods and Services Tax (GST) Day celebrations, witnessed participation of 147 cyclists, including officers, staffs members and fitness enthusiasts. The Cyclathon from Anna Adarsh College to the office of the Chennai Outer Commissionerate via Central Revenue Quarters, was flagged off by Naseer Khan, Commissioner, GST and Central Excise, Chennai Outer. This initiative aligns with the dual objectives of commemorating the upcoming GST Day and encouraging a healthier lifestyle under the banner of the Fit India Movement, the press release added.
