Availment of ITC of differential IGST demanded by Custom on import of goods

[NiteeshChandra Shukla]

Sir,

Please advise that in case of import of goods IGST has been paid at 18% erroneously instead of 28% due to wrong classification of goods and it was even cleared by the Custom Department. Now the Custom department has issued SCN to pay the differential IGST i.e 10% (28%-18%), whether ITC of such IGST will be available?

AI Summary

ITC availability on differential IGST depends on whether Customs alleges suppression or fraud; barred if such allegations exist.
ITC availability for differential IGST on import depends on the Customs demand: alleged suppression, fraud or mala fide conduct will exclude ITC, whereas a demand arising from an honest classification error without allegations of suppression or fraud may permit ITC for the additional IGST paid.