What is the full form of BCD in GST?
The BCD Full Form in GST is Basic Customs Duty. BCD is the duty charged for goods imported into India from other countries. Indirect tax, it is levied on the last consumer who buys the product that is imported. The rate of BCD varies depending on the classification of the type of the imported commodity as per the classification of the type of good or its HSN code.
The Role of BCD in the GST Regime
Multiple GST functions are performed by BCDs. It may protect domestic firms from cheaper foreign competition. The government raises import prices to boost local manufacturing. BCD provides vital government money. Government expenditure is funded by revenue. Apart from that, BCD balances domestic and international trade.
Businesses Should Understand BCD
Importers must understand BCD for cost estimations and planning. The Central Board of Indirect Taxes and Customs’ Customs Tariff Schedule contains import BCD rates. Some goods are BCD-exempt or discounted. CBIC notifications list exemptions. Customs Valuation Rules set BCD value for imported goods. The value generally includes merchandise, insurance, and freight.
Monitoring BCD Changes
Government may adjust BCD rates for economic reasons. Importers must follow these changes to compute tariffs correctly and avoid penalties. The CBIC website updates importers on customs duty rate changes and other vital information.