Amount Written Off Agst Import Bill

[CABIJENDERKUMAR BANSAL]

Regarding one of the consignment which was imported before GST. There is a dispute over quality matter with a Supplier. The Payment is on hold from last 2 years. Now we came to a conclusion that we are not paying the import dues. For settling the same the supplier has given us a confirmation on mail, to write off the dues. Please advice what is the procedure for writing off the import dues? And is there any GST liability on this written off amount ? Thanx

[DR.MARIAPPAN GOVINDARAJAN]

Whether the dues is related to pre-GST period or after GST period?

[Ganeshan Kalyani]

Import duty would have already been paid by you. Therefore, GST liability will not arise on the same transaction again.

AI Summary

GST liability on written-off import dues may not arise where import duties were paid or transaction predates GST.
A taxpayer asked about writing off import dues after a supplier dispute and whether such write-off attracts GST. Respondents asked whether the transaction was pre-GST, and advised that where import duty was already paid, GST liability on the same import transaction is not expected to arise.