import purchase

[Asked by Guest]

Dear sir ,

i want to know about import purchase under Gst, please give me solution. import purchase details below mention

purchase amount 250000/-

custom duty 10% 25000/-

I GST 18% 49500/-

Transporter charges 20000/-

clearing and forwording charges - 25000/-

how to pass entry with expense which I GST would be liabilities

[Ganeshan Kalyani]

You have to see accounting standards for booking of import in your books of accounts. As far as IGST is concerned if you have taxable goods on which GST is payable then IGST paid on import you can debit to IGST receivable account in the current asset heading of the balance sheet.

[Kishan Barai]

You can get ITC of IGST Paid on imports against sale with GST bill.

Journal entries example

Stage A

IGST A/C Dr. 49500

To Bank A/C Cr. 49500

Stage B

Buyer LTD A/C Dr. xxxxxxxx

To Sales A/C Cr. xxxxxxx

To IGST AC Cr. xxxxxxx (IGST could also be used to offset CGST or SGST)

[Ganeshan Kalyani]

Thanks Sri Kishan Ji for nicely explained.

[Kishan Barai]

Welcome Ganeshan Kalyani Ji

[Kishan Barai]

Respected Uday Kumar Ji,

You will get full credit of IGST on your imported products when you sell that goods with a bill. I already posted journal entry for it, you can meet good CA / CS/ Accountant in your area to file returns, he will help you with it. You can also file it on online portal via yourself of www.gst.gov.in , In portal you need claim ITC via filing GSTR 1, 2 &3.

I hope things are cleared now. Sorry for the inconvenience by me & other members of this portal.

AI Summary

Import IGST credit is recordable as an IGST receivable and claimable as input tax credit upon taxable sale.
IGST paid on import of taxable goods should be recorded as an IGST receivable (current asset) when paid; this IGST is available as input tax credit and can be utilised on sale of the imported goods by debiting IGST on payment and later offsetting it on the output GST liability or using it against other GST components, subject to return filing and accounting standards.