Entry tax on imported machinery -2016-17

This query is : Resolved

Srinivasa Joshi (Querist)
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27 September 2021 Respectable sir
We have imported machinery and parts ( using in bricks making) form chine during the year 2016-17, it is taxable in KTEG in karnatka, please give solution to this sir.
Thanking you
yours truly
Srinivasa Joshi

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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06 July 2024 If you have imported machinery and parts from China for use in brick making in Karnataka, you need to ensure compliance with the Karnataka Goods and Services Tax (KTEG) regulations. Here’s how you can proceed:

1. **Verify Tax Liability**:
- Check the applicable GST rates and exemptions for machinery and parts used in brick making in Karnataka. Typically, machinery and equipment used in manufacturing processes may attract GST, but certain items might be eligible for concessional rates or exemptions.

2. **Registration and Compliance**:
- Ensure your company is registered under GST in Karnataka if your aggregate turnover exceeds the threshold limit for registration.
- File GST returns regularly, including GSTR-1 (for outward supplies), GSTR-3B (summary return), and any other applicable returns.

3. **Input Tax Credit (ITC)**:
- You can claim Input Tax Credit (ITC) for the GST paid on machinery and parts imported from China against your output tax liability, provided all conditions for ITC claim are met.

4. **Customs Duty**:
- Customs duty is payable on imported machinery and parts. This should have been paid at the time of import clearance based on the classification of goods and applicable rates.

5. **Documentation and Records**:
- Maintain proper documentation of the import transaction, including the Bill of Entry, invoices, and proof of payment of customs duty and GST.
- Keep records of how the imported machinery and parts are used in your manufacturing process for future audits or compliance checks.

By following these steps and ensuring compliance with KTEG regulations, you can manage the tax implications of importing machinery and parts from China for your brick-making operations in Karnataka effectively.