What is the treatment of IGST paid on Import of Goods ?
Whether it available as ITC or Refundable or Cost.
7 Replies
suraj zanwar
(Student CA IPC / IPCC)
(352 Points)
Replied 15 May 2020
The defination of input tax in relation to a registered person also includes the integrated tax charged on import of goods.
Thus input tax credit of the integrated tax paid at the time of import shall be available to the importer and the same can be utilised by him as input tax credit for payment of taxes on his outward supplies.
Thus input tax credit of the integrated tax paid at the time of import shall be available to the importer and the same can be utilised by him as input tax credit for payment of taxes on his outward supplies.
Pankaj Rawat
(GST Practitioner)
(55047 Points)
Replied 16 May 2020
As per section 7 & 5 of IGST r/w Section 3 of custom tariff Act 1975 , IGST is levied on import of Goods . which is paid under RCM .
And of we read the Defination of Input tax , the credit can be availed the tax paid on RCM .
hence credit can be availed .
Now come to refund :
refund can be claimed of credit for the same not availed . Of read the Defination of Reverse Charge u/s 2(98) Liability to pay Tax by Recepeint. & As per Section 49 r/w Section 54 the refund can claimed from cash ledger.
So in brief either ITC can be availed or Refund can be claimed.
And of we read the Defination of Input tax , the credit can be availed the tax paid on RCM .
hence credit can be availed .
Now come to refund :
refund can be claimed of credit for the same not availed . Of read the Defination of Reverse Charge u/s 2(98) Liability to pay Tax by Recepeint. & As per Section 49 r/w Section 54 the refund can claimed from cash ledger.
So in brief either ITC can be availed or Refund can be claimed.
Pankaj Rawat
(GST Practitioner)
(55047 Points)
Replied 16 May 2020
Sorry ,for above reply in section to refund of IGST because in import the IGST is not paid into Electronic Cash ledger. Refund cannot be claimed
yash
(accountant)
(519 Points)
Replied 16 May 2020
Dear pankaj ji,
i have doubt on your reply that IGST levied on import is not paid under RCM, the only part on which RCM to be paid is on Ocean freight and not on the total IGST amount. please clarify.
i have doubt on your reply that IGST levied on import is not paid under RCM, the only part on which RCM to be paid is on Ocean freight and not on the total IGST amount. please clarify.
Pankaj Rawat
(GST Practitioner)
(55047 Points)
Replied 17 May 2020
DEAR YASH
IN TERM OF SECTION 7(2) IGST ACT PROVIDES THAT SUPPLY OF GOODS IMPORTED INTO THE TERRITORY OF INDIA, TILL THEY CROSS THE CUSTOM FRONTIERS OF INDIA, SHALL BE TREATED TO BE SUPPLY OF GOODS IN THE COURSE OF INTER STATE TRADE.
THUS ALL IMPORTS SHALL BE DEEMED AS INTER-STATE SUPPLIES & ACCORDINGLY IGST SHALL BE LEVIED IN ADDITION TO CUSTOM DUTIES.THE PROVISO TO SECTION 5(1) OF IGST ACT PROVIDES THAT THE IGST ON GOODS IMPORTED INTO INDIA SHALL BE LEVIED & COLLEECTED IN ACCORDANCE WITH THE PROVISION OF SECTION 3 OF CUSTOMS TARIFF ACT,1975.
SO YOU CANNOT RELEASE THE GOODS FROM CUSTOM WITHOUT PAYING DUTIES & IGST.
NOTE : RCM ON OCEAN FREIGHT HAS BEEN PRESCRIBED BY NOTIFICATION 10/2017 & 8/2017 IGST R/W CORRIGENDUM TO IGST NOTI. NO. 8/2017.
HENCE RCM OF FREIGHT (OCEAN) IS COVER UNDER SECTION 9(3)
& IGST IS APPLICABLE ON VALUE OF GOODS + BCD
HOPE I ABLE TO CLARIFY YOUR DOUBTS
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