Question 14: whether social welfare charges is levied on IGST on purchasing from SEZ unit or it is exempt as per notification 13/2018 dated 02.02.2018 of custom act''

Answer Chapter VI of the Finance Bill, 2018 clause No. 108 levy Social Welfare Surcharge on the goods imported into India. It is calculated @ of 10% on the aggregate of duties, taxes and cesses which are levied and collected under section 12 of the Customs Act, 1962 but not included safeguard duty u/s 8B and 8C, countervailing duty u/s 9 and anti-dumping duty u/s 9A of Custom tariff act.

But vide Notification No. 13/2018-Customs Dated 02/02/2018 Govt. exempted Social Welfare Surcharge leviable on Integrated tax and compensation cess part in the custom duty u/s 3 of custom tariff act.

It means that Social Welfare Surcharge applicable on all other aggregate of duties, taxes and cesses under custom acts other than Integrated tax and GST compensation cess.

For your information there are `two more notification which are also important for you. These are follows:-

Notification No. 11/2018-Customs, dated 02.02.2018, which specifies the goods that are exempt from the whole of the Social Welfare Surcharge.

Notification No. 12/2018-Customs Dated 02/02/2018, which specifies the goods that are partially/ some extent exempted from the the Social Welfare Surcharge. .(REPLY dt. 19/02/2018)