ITC on the imports made by multi unit Manufacturer - Is ITC allowed to the Importer

[UMKhonaandCo m]

In case the Manufacturer having multi locational units in different states and he is importing the goods. In case while filing the Bill of entry by mistake the system picks up the GSTN of the unit other than the actual user either HO or other unit in another state. In that case, whether the ITC would be available to the Unit where the goods are actually arrived and consumed. If yes, what would be the procedure for availment of the ITC.

This happens sometimes due to the ICEGATE random pickup.

Regards,

[Ganeshan Kalyani]

Sir, the GSTIN mentioned on the bill of entry will be considered for claiming credit. The address on all the import documents should of that address where GSTIN in mentioned.

[Kamalakara kS]

Sir

Kindly note below

Please provide correct GSTN were the proposed goods are going to be consumed in BOE,

If by chance if there is error ,

Then make invoice from GSTN were BOE is mentioned to where it is proposed to be consumed.

Make E-way bill accordingly

Since it is distinct person sales no impact on financials

[YAGAY andSUN]

Kindly ask your Customs Broker to opt the correct Branch Code and GSTIN while filing online Bill of Entry through ICES 1.5. In case of any wrong entry then under Section 149 of the Customs Act, 1962 you can get it corrected from Customs Department to avail the ITC.

AI Summary

Can Multi-Unit Manufacturers Claim ITC if Wrong GSTIN is Used? Section 149 of Customs Act Provides a Solution. A discussion on a forum addresses whether Input Tax Credit (ITC) is available for a multi-unit manufacturer when the wrong GSTIN is picked during importation. The issue arises when the system mistakenly selects a GSTIN for a unit other than the actual user. Responses suggest ensuring the correct GSTIN is used on import documents and invoices. If errors occur, corrections can be made by invoicing between units and using the correct GSTIN. Additionally, under Section 149 of the Customs Act, 1962, corrections can be made through the Customs Department to claim ITC.