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

IGST input credit on imported loaned goods: credit allowed for business use but must be reversed if goods are returned.
IGST input credit may be available on goods imported and received on loan when used in the course of business; credit depends on business use and taxable supplies. If loaned goods are to be returned, any ITC availed must be proportionately reversed. Mere demonstration without resulting taxable sales restricts entitlement to ITC on import IGST; taxable sales with invoices and GST support recovery or refund of IGST paid at import.