ITC IMPORT AGAINST EPCG

[ZULFIKAR VOHRA]

Dear experts,

We import machinery against EPCG licence. IGST paid throught EPCG licence.

Can we take ITC of IGST ? if yes please give us reference.

Zulfikar B. Vohra

AI Summary

Can Input Tax Credit be claimed on IGST paid via EPCG license? Clarification on conditions and limitations. An individual inquired about the possibility of claiming Input Tax Credit (ITC) on Integrated Goods and Services Tax (IGST) paid through an Export Promotion Capital Goods (EPCG) license. Experts confirmed that while IGST must be paid at the time of imports, ITC can be claimed on the duty paid. However, unutilized ITC cannot be refunded after exports. Another expert clarified that if IGST is not paid in cash during import clearance, ITC cannot be availed. The discussion referenced relevant guidelines and amendments to the Foreign Trade Policy, emphasizing the conditions under which ITC is permissible.