Import of Goods under GST_Urgent
This query is : Resolved
25 May 2020
Dear Experts, please provide a solution to my query.
A firm has imported goods from China and paid Custom Duty and GST at the time of clearance.
The bill send by the supplier was $5.00 per unit(Value = $5*Rs.75/$ = Rs 375 per unit)
But at the time of clearance , customs takes the assessable value at Rs. 500 per unit and then charges custom duty and 18% gst. So we paid IGST=500*18% = Rs. 90 (IGST input)
We sold the goods to our customers at Rs. 200 per unit @18% GST (IGST output) = Rs. 36. The rate of tax at the time of import & sale is same @18%
Due to the difference of assessable value under GST & customs, we are having extra input of Rs. (500-200)*18%=IGST Rs. 54.00.
We have sold 1 Lacs unit during the FY 2019-20, outstanding extra credit of IGST = Rs. 54 Lacs.
Query 1 : Whether there is any method by which refund of extra igst paid at the year end can be claimed as refund?
Query 2: Suppose we close down the trading of this product and continue with trading of other remaining products under the same gst registration.
Whether the accumulated IGST input of Rs. 54 Lacs can be used against liability of the other products sold?
A firm has imported goods from China and paid Custom Duty and GST at the time of clearance.
The bill send by the supplier was $5.00 per unit(Value = $5*Rs.75/$ = Rs 375 per unit)
But at the time of clearance , customs takes the assessable value at Rs. 500 per unit and then charges custom duty and 18% gst. So we paid IGST=500*18% = Rs. 90 (IGST input)
We sold the goods to our customers at Rs. 200 per unit @18% GST (IGST output) = Rs. 36. The rate of tax at the time of import & sale is same @18%
Due to the difference of assessable value under GST & customs, we are having extra input of Rs. (500-200)*18%=IGST Rs. 54.00.
We have sold 1 Lacs unit during the FY 2019-20, outstanding extra credit of IGST = Rs. 54 Lacs.
Query 1 : Whether there is any method by which refund of extra igst paid at the year end can be claimed as refund?
Query 2: Suppose we close down the trading of this product and continue with trading of other remaining products under the same gst registration.
Whether the accumulated IGST input of Rs. 54 Lacs can be used against liability of the other products sold?
26 May 2020
Please experts guide me.
09 July 2024
Based on the details provided, let's address your queries regarding the IGST input credit and its utilization:
### Query 1: Refund of Extra IGST Paid
1. **Refund Eligibility**: Yes, you can potentially claim a refund of the excess IGST input credit accumulated during the financial year. This excess arises because you paid IGST on a higher assessable value at the time of customs clearance compared to the sale value at which IGST was charged to your customers.
2. **Process**: To claim a refund of the excess IGST paid:
- File Form GST RFD-01 (Application for Refund) electronically on the GST portal.
- Provide details of the excess IGST paid, including invoices and other supporting documents.
- Ensure all necessary conditions for refund eligibility are met, such as filing all GST returns, correctly reflecting excess payment in your returns, etc.
3. **Documentation**: You will need to substantiate your claim with documentation that shows the excess IGST paid, such as customs clearance documents, sales invoices, and calculations demonstrating the difference in assessable values.
4. **Timeframe**: Refunds under GST can take some time to process. It's advisable to monitor the status of your refund application on the GST portal and respond promptly to any queries raised by the authorities.
### Query 2: Utilization of Accumulated IGST Input Credit
1. **Utilization Against Other Products**: Yes, you can utilize the accumulated IGST input credit of Rs. 54 lakhs against the GST liability arising from the sale of other products under the same GST registration.
2. **Adjustment**: The IGST input credit can be used to offset IGST output liability on sales of other products, provided they are also subject to IGST. The rate of tax (18%) matches, which simplifies the adjustment process.
3. **GST Compliance**: Ensure that you maintain proper records of input and output taxes for all transactions. This includes segregating utilization of IGST credit against the appropriate output tax liabilities.
### Conclusion
- **Refund**: Claim a refund of the excess IGST paid by filing GST RFD-01 with supporting documentation.
- **Utilization**: Utilize the accumulated IGST input credit of Rs. 54 lakhs against the GST liability on sales of other taxable goods under the same GST registration.
To proceed effectively, it's recommended to consult with a GST practitioner or tax advisor who can assist in preparing and filing the refund application and ensuring compliance with GST regulations.
### Query 1: Refund of Extra IGST Paid
1. **Refund Eligibility**: Yes, you can potentially claim a refund of the excess IGST input credit accumulated during the financial year. This excess arises because you paid IGST on a higher assessable value at the time of customs clearance compared to the sale value at which IGST was charged to your customers.
2. **Process**: To claim a refund of the excess IGST paid:
- File Form GST RFD-01 (Application for Refund) electronically on the GST portal.
- Provide details of the excess IGST paid, including invoices and other supporting documents.
- Ensure all necessary conditions for refund eligibility are met, such as filing all GST returns, correctly reflecting excess payment in your returns, etc.
3. **Documentation**: You will need to substantiate your claim with documentation that shows the excess IGST paid, such as customs clearance documents, sales invoices, and calculations demonstrating the difference in assessable values.
4. **Timeframe**: Refunds under GST can take some time to process. It's advisable to monitor the status of your refund application on the GST portal and respond promptly to any queries raised by the authorities.
### Query 2: Utilization of Accumulated IGST Input Credit
1. **Utilization Against Other Products**: Yes, you can utilize the accumulated IGST input credit of Rs. 54 lakhs against the GST liability arising from the sale of other products under the same GST registration.
2. **Adjustment**: The IGST input credit can be used to offset IGST output liability on sales of other products, provided they are also subject to IGST. The rate of tax (18%) matches, which simplifies the adjustment process.
3. **GST Compliance**: Ensure that you maintain proper records of input and output taxes for all transactions. This includes segregating utilization of IGST credit against the appropriate output tax liabilities.
### Conclusion
- **Refund**: Claim a refund of the excess IGST paid by filing GST RFD-01 with supporting documentation.
- **Utilization**: Utilize the accumulated IGST input credit of Rs. 54 lakhs against the GST liability on sales of other taxable goods under the same GST registration.
To proceed effectively, it's recommended to consult with a GST practitioner or tax advisor who can assist in preparing and filing the refund application and ensuring compliance with GST regulations.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Tax on capital gains revoked us 54f
- Inventory of finished goods
- Confusion around Form 26QB fields
- Sale of property furniture sale
- Filing of Form 10BB instead of Filing Form 10B
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Refund of AY 22-23
- Disallowance of Section 43B(h) to sez units
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Last year input claim shown in gstr9
- GST Registration Cancellation books of accounts asked by officer
- TDS Deduction Online Learing Platform
- Point (III) 9 of GSTR-9C
- As per our records, find the below outstanding demand(s)* and interest payable u/s 220(2):
- Regarding transaction th. credit card
- HSN Details in IFF/GSTR-1 & in GSTR 9
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
