CBIC Issues clarification on levy and collection of social welfare surcharge on imports under various schemes.

Central Board of Indirect Taxes & Customs in its Circular dated 10th January 2020 has clarified that in case of imports under Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS), Social Welfare Surcharge is not exempted and must be levied and collected on the imported goods. SWS ( Social Welfare Surcharge ) is calculated at the rate of ten percent on the aggregate of duties, taxes, and cesses which are levied and collected under section 12 of the customs Act, 1962.

The Payment of SWS cannot be debited through duty credit scrips and therefore has to be paid by the importers in cash and with regards to the past cases of debits of SWS already made in duty credit scrips shall not be disturbed and the payments made through debit in duty credit scrips may be accepted as revenue duly collected.

Click here to read the Notification.