Demurrage charges-customs duty-Bill of Entry and IGST

[Asked by Guest]

Per Customs valuation rules , Demurrage charges are also part of Value of imported goods and consequently duty on the same would be leviable. Prior to GST, we used to pay the differential duty through TR-6 Challan and was able to take credit of CVD/SAD, as the case may be. , Under GST, should we consider TR-6 Challan as the duty paying documents and If Bill of Entry is reassessed, IGST amount will get reflected in the BOE and upon payment of the said duties, we would be able to take credit of the IGST portion Kindly enlighten the procedure

Regards,

Jayanta Bandyopadhyay

Howrah

7.8.2020

AI Summary

Input Tax Credit on IGST available when shown in Bill of Entry and supported by challan proof of payment.
Input Tax Credit of IGST charged on import is admissible where the Bill of Entry records the IGST and payment is supported by documentary proof (for example, TR 6 challan); the Bill of Entry is the primary document for credit while the challan is supporting. IGST is governed by the IGST Act with CGST rules applying mutatis mutandis; demurrage related to goods at port may be includible in assessable value whereas post importation demurrage is not. A reassessed Bill of Entry showing revised IGST permits taking credit subject to proof of payment.