Setting off of CVD and SAD under GST Regime

[Malay pota]

I have a question regarding payment of CVD and SAD as per old Customs duty structure and setting off of the same under GST regime.

Our question is as under:

Suppose I, as MANUFACTURER, have an Advance Authorization (Advance Licence) issued in 2016 .In the advance licence we have made import and effected export also but, unfortunately we could not fulfill complete Export Obligation and for regularization of the advance licence, we need to pay applicable customs duty on the excess import made by us with interest. The applicable duty structure( when the goods imported by us) of the imported item for which we need to pay customs duty with applicable rate of interest is 7.5% Basic Customs duty +12.5 Additional Customs duty (CVD)+2% Higher education cess+1% Secondary Higher Education Cess+4% Special additional duty(SAD).

Before application of GST, 12.5% CVD and 4% SAD were to be allowed to be set off by Claiming CENVAT. Now,my question is if, i regularize the advance licence today by paying the Customs duty as applicable rate as above how can i claim set off of CVD as well as SAD paid by me in the GST regime ?

[MUKUND THAKKAR]

claim thru TRN-1 if not filed. last date of filling TRN-1 is 31.10.2017.

[DR.MARIAPPAN GOVINDARAJAN]

Yes, I agreed with Shri Mukund.

[Malay pota]

Thank you very much to both of you for replying.But, TRN1 is I think for the credit which is pending to claim as on 1st July 2017 when GST became applicable.My question is if I pay the Customs duty TODAY( on 5th October 2017) for regularisation of Advance Authorisation as per the old customs duty structure which was applicable at the time of actual import of the item for which i need to pay Customs duty in such case, the CVD and SAD which i will pay how the same will be sett off now in the GST regime?

[JSW CEMENTLIMITED]

Through Trans-1 you can claim credit availed upto 30th July. In my opinion, you can claim refund of duty paid under section 142(3) of CGST ACT 2017

AI Summary

Transitional credit via TRN-1 for pre-GST CVD and SAD may be claimed, or alternatively pursue a GST refund remedy. Practitioners advised that CVD and SAD attributable to pre-GST imports should be claimed as transitional credit via the transitional form TRN-1 for credits pending on GST commencement, subject to the stated filing deadline; alternatively, respondents suggested pursuing a GST refund remedy where transitional credit is not available.