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Imported Material ITC ?

s.murali (commercial manager) (186 Points)

23 June 2018

Dear Sir, Our company purchase imported Material. showing the bill of Entry Customs duty +Gst , My question is both are taken the ITC .Pl.give your suggestions.

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5 Replies

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 23 June 2018

Only for GST part can be taken as ITC

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s.murali (commercial manager) (186 Points)
Replied 23 June 2018

Sir My doubt is why not taken customs duty ITC ,is there any notification.pl share

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 24 June 2018

The GST will levy in Accessible value which includes both goods value + BCD

Lets understand with example:

If the assessable value of goods imported into India is Rs. 100/-.

Basic Customs Duty is 10% ad-valorem.

Integrated tax rate is 18%.

Assessable Value= Rs. 100/-
Basic Customs Duty (BCD) = Rs. 10/-
Value for the purpose of levying IGST = Rs. 110/-
GST – Integrated Tax = 18% of Rs.110/- = Rs. 19.80
Total Taxes = Rs. 19.80

So you can avail ITC for Rs. 19.8

Vinod Babu (24191 Points)
Replied 24 June 2018

Good explanation.
Nice explanation sir.

s.murali (commercial manager) (186 Points)
Replied 24 June 2018

Sir, Bill of Entry showing Basic customs duty + Sec.high Edu cess + Seachh Bharat cess also. can we take ITC including above duties +assessable value. = GST- Integrated Tax =18%. Is it correct.or Only taken the BCD .Pl. clarify.