Author Topic: GST on Numismatic coins imported by post to India  (Read 519 times)

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Offline GeorgeLino

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GST on Numismatic coins imported by post to India
« on: March 17, 2018, 11:44:30 AM »
Dear Members,

Post implementation of GST in India, Numismatic coins (tariff item 9705) and philatelic items (tariff item 9704) are catagorized under schedule IV attracting a concessional gst of 5% and with a Basic Customs Duty of 10%. However, the benefit is never passed on to the collectors who imports coins by post from other countries. All articles arriving via post are catagorized under ‘tariff item 9804 - all dutiable articles intended for personal use imported by post or air’, and are charged a flat Basic Customs Duty of 35% and IGST 5% by the customs department operating from Foreign Post Offices of ‘India Post’, which altogether comes around 42.75%. This is in addition to the foreign currency conversion charges and postages born by collectors, the end result is that collectors has to spend at least 50-60% of the value of the coins they import as duties to continue their hobbies.

It is high time that numismatists all over India join together and submit a petition to concerned authorities or to the GST council to exclude numismatic items from the purview of ‘Tariff item - 9804’, thereby relieving collectors from paying exorbitant amounts as duties.

George Lino
« Last Edit: March 18, 2018, 03:42:37 PM by GeorgeLino »

Offline dheer

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Re: Duty on Numismatic coins imported by post
« Reply #1 on: March 17, 2018, 06:12:28 PM »
Thanks for bringing this to attention.
The custom official are lazy and don't take the efforts to classify the items correctly
http://coinsofrepublicindia.blogspot.in
A guide on Republic India Coins & Currencies

Offline GeorgeLino

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Re: Duty on Numismatic coins imported by post
« Reply #2 on: March 17, 2018, 07:58:23 PM »
Appearently, customs officials doesn’t have to correctly classify each and every item arriving by post.Tariff item 9804 is described as ‘all dutiable articles intended for personal use imported by post or air’, which will encompass almost anything imported by post. According to Customs Valuation Rules, such a description is assigned to ease the duty of appraisers at Foreign Post Office’s, by prescribing a single rate of duty (Appraisers have to correctly classify items arriving through other modes though - by courier, air cargo, shipping cargo etc. However importing by courier etc costs much more than import by post. Also, many issuing mints send coins to collectors only by post). Hence as long as there is no exclusion clause provided to the description of Tariff item 9804, customs officials can impose the exorbitant rate of 42.75% on numismatic coins imported by post.
« Last Edit: March 18, 2018, 05:28:36 PM by GeorgeLino »

Offline Figleaf

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Re: Duty on Numismatic coins imported by post
« Reply #3 on: March 17, 2018, 09:25:46 PM »
If the facts are correctly represented above, India is in breach of its obligations of membership of the World Trade Organisation (WTO.) This means, that if internal Indian procedures do not lead to a satisfactory result, any member-state of the WTO (practically all nations on earth) can bring a complaint against the country in a Dispute Settlement Procedure. Note that private persons cannot be a party in the procedure.

There are a number of states that derive income from "coin" sales. If one of them can be approached, e.g. through their numismatic agency, India may be forced to change its border procedure. In other words, if you personally know someone working in the numismatic agency of a small country, it is worthwhile to talk to them and see if you can get the ball rolling...

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.