IGST Input Credit on goods received from overseas OEM Supplier on LOAN

[SARAVANAN RENGACHARY]

Sir,

Can we avail IGST input credit on the material IMPORTED for demonstration purpose on payment of duty. Please note that the imported material is received on LOAN basis. No foreign exchange is involved. However, applicable import duty is paid.

Please suggest.

Regards

Saravanan.

AI Summary

Eligibility to Claim IGST Input Credit on Imported Goods for Demonstration: Conditions and Proportionate Reversal Explained A user inquired about the eligibility to claim IGST input credit on imported goods received on a loan basis for demonstration purposes, with import duty paid but no foreign exchange involved. An expert responded affirmatively, indicating that input credit can be claimed as it is in the course of business, but proportionate credit must be reversed when goods are returned. Another expert concurred, emphasizing that IGST paid at import can be refunded if products are sold with GST charged. However, if used solely for demonstration without sales, no input tax credit on import duty can be claimed.