Difference Between Custom Duty and GST: A Clear Comparison
The distinction between customs duty and GST is important for all the businesses involved in international trade; this distinction helps in compliance and cost management. Eximpe understands that dealing with these taxes may be confusing, but here is a clear comparison that should give you informed decision-making. Custom Duty Meaning Custom duty refers to a tax that is charged on goods whenever such goods cross international boundaries while being imported or exported. In India, the customs duty is provided by the Customs Act of 1962 and is managed by the Central Board of Indirect Taxes and Customs (CBIC). Its primary objectives are: Generating revenue for the government Protecting domestic industries from foreign competition Regulating and monitoring the movement of goods Preventing illegal trade and smuggling Rates of custom duty will be based on the classification of the product, its origin and its composition. The most popular are Basic Customs Duty(BCD), Social Welfare Surcharge...