IMPORT AGAINST ADVANCE AUTHORISATION - ITC REGARDING

[SANJEEV JADHAV]

Dear Experts, We have imported goods under Advance authorization during the year 2019-20. Now due to non fulfillment of export obligation, we are paying customs duty involved in the above imported goods. Payment of customs duty will be on customs challan by mentioning import bill of entry number, date and other details. Can we claim ITC of IGST involved in the said shipment on Customs Challan. It will be manual payment to Customs on challan and will not reflect the said amount in GSTR-2A and 2B.

[Devang Bhasin]

Sanjeev ji,

I am of the view that ITC of IGST can claimed subject to condition that there is a bona-fide default in non-fulfillment of export obligation coupled with voluntary payment of customs duty thereof. Under pre-GST regime, credit of CVD and SAD were allowed on account of non-fulfillment of export obligation.

Also note that Rule 36 of the CGST Rules does not contemplate TR-6 challan as a document for claiming ITC, however in my view substantive benefit of ITC cannot be denied on account of technical/ procedural grounds Hence such input credit can be availed basis the manual challan.

Please also note that the aforesaid issue is litigative and department may challenge admissibility of such input tax credit.

Regards,

Advocate Devang

[KASTURI SETHI]

I support the views of Sh.Devang Bhasin, Advocate. ITC is to be taken against bill of entry which is a valid document and challan is mode of payment. Time limit aspect has to be taken care of. Time of supply of goods under Section 12(2) of CGST Act is also relevant.

Availment of ITC in such scenario is not litigation-free. Better option is to discuss the whole issue with the jurisdictional GST Range Officer or Deputy Commissioner.

[SANJEEV JADHAV]

Dear Experts, Thanks you very much for your suggestion.

[MANOHARAN ARUMUGAM]

To avoid any ambiguity, it is better to recall the BE(s), and re-assess with applicable IGST. Once it is re-assessed, you can pay the differential duty with interest on-line. It is admissible document for availing Input tax credit.

Further, it is to be noted that system will calculate the interest from the date of re-assessment of BE. However, you can calculate the interest from the first date of OOC (Out of Charge) and pay the interest under TR-6.

Thanks

[Mehul Goyal]

Hi All,

I'm facing the same issue and to get the License redeemed with DGFT, we have paid BCD+IGST+Interest through TR-6 Challan. How can ITC be claimed on it so that the amount shows up in GSTR-2A and 2B.

[KASTURI SETHI]

Dear Sir,

Take up the matter with Officers of ICEGATE and GSTN (Common Portal System) simultaneously. Both portals should be synchronized. Also talk to jurisdictional GST Range Officer or Deputy Commissioner, In-charge GST Division.

[KASTURI SETHI]

The assessee must not suffer loss of money without any fault on his/her part. Make all-out efforts. You will be successful. Thus you will be able to pave the way for others who are inactive in this context.

AI Summary

ITC of IGST may be claimed after voluntary customs payment on challan subject to export obligation and documentary proof. ITC of IGST can be claimed where imported goods under Advance Authorisation fail export obligations and the importer voluntarily pays customs duty via TR-6 challan, provided the bill of entry evidences the import and time-of-supply and limitation rules are satisfied; alternatives include recall and reassessment of the bill of entry to record IGST with online payment or coordinating ICEGATE/GSTN and jurisdictional GST officers to ensure the payment is reflected for availing credit.