Belated payment of IGS on disputed imports -- Eligibility of ITC

[Muthukumar Muthunarasimhan]

Dear Experts,

Can we take ITC by way of belated payment of IGST on the disputed imports machinery which was cleared and utilized for production more than year? ( During such period case is pending and now favoured to the department.)

AI Summary

ITC not allowed on disputed imported machinery under Section 17(5)(i) CGST Act and Rule 36(3) CGST Rules. A forum user inquired about the eligibility of claiming Input Tax Credit (ITC) through belated payment of Integrated Goods and Services Tax (IGST) on disputed imported machinery used for over a year, where the case was resolved in favor of the department. An expert responded that ITC is not allowed under Section 17(5)(i) of the Central Goods and Services Tax (CGST) Act, 2017, and Rule 36(3) of the CGST Rules, 2017. Another participant questioned whether the dispute involved customs duty, which includes IGST. The discussion clarified that the Customs authority required the IGST payment, and a participant suggested ITC might be claimed based on the duty paid challan, noting the distinction between tax and duty under the CGST Act.