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Query for Import goods

10 November 2018

Import purchase as per Invoice Rs. 10 Lakh. Indian Custom Invoice raised ( 10 Lakh + freight 5000, + Insurance charges 8000) 1013000 on charges IGST. Suppliers Invoice Amounts 10 Lakh but Indian Custom IGST charges on 1013000. 13000 payment neither supplier nor our side. Please suggest me our purchase amount.

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10 Replies

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 10 November 2018

Your purchase amount will be the amount in BOE/SB by Custom

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sandeep (CMA-FINAL) (59 Points)
Replied 11 November 2018

yes purchase amount will be the amount mentioned in Bill of Entry

P.Mishra (Accountant) (155 Points)
Replied 11 November 2018

what about 13000? what transaction entry will post for 13000, custom charges only for duty purpose and this amount not paid to suppliers.

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 12 November 2018

CUSTOM DUTY & IGST IS PAID BY RECEPIENT DIRECTLY TO CUSTOM ONLY THEN GOODS GET RELEASE.

BOOK AS 13000/- AS IMPORT CHARGES OR BOOK IN UNDER PURCHASE

P.Mishra (Accountant) (155 Points)
Replied 12 November 2018

when book Import charges entry
import charges dabit
but what ledger show in credit side?
13000 not paid to no one

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 12 November 2018

purchase (import) a/c Dr.

purchase import duty a/c Dr

IGST a/c Dr

TO PARTY (SUPPLIER A/C CR

TO BANK A/C CR * (DUTY & IGST PAID)

P.Mishra (Accountant) (155 Points)
Replied 14 November 2018

sir, My question is that if I booked purchase 10.13Lac but paid amount to supplier is 10 lac
5000 freight and 8000 insurance charges add by custom for calculatio custom duty, which not paid to custom and supplier, so how can I show 13000 entry. if I book 13000 as import charge but what ledger comes in credit side? actually I have not paid 13000 so I can't show payment 13000 to supplier.

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 16 November 2018

DEAR MISHRA JI

THE GOODS CANNOT BE RELEASE WITHOUT PAYMENT OF CUSTOME DUTY

P.Mishra (Accountant) (155 Points)
Replied 16 November 2018

Thanks for reply sir
I know that "THE GOODS CANNOT BE RELEASE WITHOUT PAYMENT OF CUSTOME DUTY"
but sir we have paid only custom duty to custom department which charge on assessable value,
and purchase value to suppliers which is 10 lac
but 13000 amount not paid to suppliers and custom department.
example
10000$ purchase price
custom rate 74.4
purchase value - 10000* 74.4= 774000
insurance and freight - 13000+13000 = 26000
assessable value- 800000
custom duty 20%- 160000
cess 10%- 16000
igst12%- 117120
total Challan paid - 293120
paid to supplier - 774000
now my question is that what is purchase price ?
if we take 800000 purchase price
26000 freight and Insurance not paid to no one. it's use only for custom assessable value and custom duty.
if you understand my problem, plz solve it. what provision make for 26000?

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 29 November 2018

Dear Sorry for late reply : In condition your purchase value will be always be the payment you made to supplier ie 774000/- No if you have not paid the freight & Insurance then no need consider or cannot consider those expense in your Books of Account . Now the Entries to be Made in Books: 1.Purchase Import A/C Dr 774000/- To Supplier A/c. 774000/- 2. Custom Tax (Import) Dr 176000/- To Bank A/c. 176000/- 3. IGST paid A/ c 117120/- To Bank. A/c 117120/- Now claim ITC on IGST paid Rs. 117120/ - in table 5 of GSTR-3b The Accessible value evaluated by custom dept. Is for only to charge custom duty Tax & others , Hence cannot be your Purchase value . Note : If Freight & Insurace is paid by you then only you can claim expense for the , else its just for to evaluate the accessible value by Custom