Import Duty to be passed on post supply but before GST

[Guest]

Dear Sirs

we are the manufacturer as well trader have some of the item imports, and being sell along with manufacturing item, through distributors channel, the distributors are going to availed credit on manufactured item as Excise is charged and reflecting in the invoice, but the same manufactured items sent from our North depot to the distributors with retail invoice they do not have evidence in the retails invoice that is a excise paid material,

Further we are facing issue while preparing trading bill which import duty paid material, while selling we are not displaying the import duty component we paid in the invoice, and its gone against 2% cst out side states, thus distributors is not having any documentory evidence that the goods has been duty paid.

Is there any ways where we can issue any invoice now showing import duty paid.

Your valued suggestion is highly appreciated.

thanks

Mitesh

[Govind Gupta]

i think there are three options available

to bill directly from factor under excise invoice

to bill from exicisable warehouse

to issue duty paying document ( recently issued document which is eligible for credit under cenvat credit rules), it can be issued to anyone in the chain ( not necessarily even if you have not sold directly to the person who holds that stock but a chain is followed), but there are lot of compliance and documentation requirements

[Kishan Barai]

Post GST it would be Basic + IGST where IGST credit is fully available.

[vk agarwal]

No credit of basic customs duty is available to the buyer of imported goods. Credit of only IGST is allowed.

If the goods did not show excise duty on bills, the trader who sells such goods after GST can get deemed credit @60% of 9% if the CGST rate is 18%. He can claim this in maximum 6 months

No credit is available if the goods were sold on payment of 2% CST

AI Summary

IGST credit availability: IGST on imports is creditable while basic customs duty is not, require documentary options. Three practical means to evidence duty-paid imported goods are billing from the factory under an excise invoice, billing from an excisable warehouse, or issuing a duty-paying document eligible under CENVAT rules subject to compliance. Under GST, IGST on imports is available as input credit but basic customs duty is not. Where pre-GST invoices did not show excise, a trader may access a deemed input tax credit mechanism subject to conditions and temporal limits; sales made under a 2% CST arrangement do not permit input credit.