ITC of GSt paid on Imports of Goods and provisioins of Sectioin 16 & Rule 36

[Vinay Kunte]

As per the amended provisions of Section 16(2) read with the Amended Rule 36(4) the ITC can be claimed only when the supplier has communicated the details of the Invoices to the recipient through the GSTR-1 Return and he has paid the GST to the government i.e. GSTR-3B Return has been filed by him.

Now, similar to the ITC of GST paid under RCM, the GST is paid on Import of Goods (IGST) at the time of clearance of Goods for Home Consumption from the Customs clearing station which is well before the receipt of the Goods.

Can the ITC of the IGST paid on Import of Goods be claimed even if the same is not auto-populated to GSTR-2B as all the conditions are satisfied to avail the ITC such as - the Goods are received under the cover of the document as defined under Section 31, GST has been paid to the government and the supply received is for furtherance of Business. There is no question of the supplier to be filing any GSTR-1 Return as well as a third party making the payment of GST to the Government.

It is observed that the BOE's are not auto-populated to the GST Portal under the GSTIN of the importers even if the same are correctly transmitted by the ICEGATE portal of the Customs. The search BOE transaction given by the GSTN is almost useless as each search requires 20-30 minutes and that too only if the reference date and BOE date is correct in search wherein the BOE date is readily available but the reference date in any one of the 3 dates - BOE date, Payment date or OOC Date which consumes a lot of Man-hours even after the payment of GST to the government and all other provisions of Law & rules are complied with.

Please provide your valuable guidance in the matter.

[Shilpi Jain]

As per 16(2)(aa) talks of only invoice and debit note and not bill of entry. So said provision not applicable for BoE. Also a circular

Was issued which mentioned 36 (4) is applicable only for those documents which are required to be disclosed by supplier in GSTR-1

[SOWMYA CA]

Vinay,

For this you must generate the ticket with GST support or GST self-service portal providing several information consisting of the full information about BE records, GSTIN, BE Number, BE Date, Port Code, Reference Number, and Screenshot of ICEGATE portal including BE record.

[Shilpi Jain]

Going by the provisions, you can go ahead with availing the credit w.r.t. the BoEs. You could consider raising the ticket as mentioned by CA Sowmya in case you do not wish to have any auto generated notices from the department.

[CA Hemanth Kumar]

Dear Vinay Kunte,

On clear reading of section 16(2)(aa) we can say that it will apply only for invoice debit note that are to be furnished by the supplier. This will not apply for BoE as there is no supplier to update the same.

[(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37;]

Further clause (a) refers that the credit can be claimed based on an invoice or debit note or any other document as may be prescribed.

BoE and ISD will come under any other document category as per rule 36.

Thereby in my view restriction of credit as per 16(2)(a)(a) will not apply for imports, SEZ procurements and ISD invoices.

[Vinay Kunte]

Thank you veery much all for your valuable guidance and replies in the matter, which has helped me to confirm my interpretation derived from the provisions of the amended Section and Rule made thereunder.

Thank you once again.

[Vinay Kunte]

Hello All,

In continuation to the discussion and the guidance given by the experts, I take the liberty to once again the bring the issue forward with the request to kindly confirm that the subject issue can be resolved directly based on the clarification given by CBIC vide Circular No. 123/42/2019-GST dated 11/11/2019, wherein it is clarified that "the restrictions for availment of ITC is imposed only respect of those invoices / debit notes which are required to be uploaded by the suppliers under Sub-section 1 of Section 37 and which have not been uploaded. Therefore, taxpayers may avail full ITC in respect of IGST paid on Imports, ......, etc., which are outside the ambit of Sub-section 1 of Section 37......."

You all are requested to kindly provide your views in the matter in light of the above clarification issued by CBIC.

[Shilpi Jain]

Hello Vinay

If you look at my reply, I had mentioned that one circular also clarifies this. This is the one that you have mentioned!!

[Shilpi Jain]

So this will also add as a support for the view expressed. However, the department may argue that now that the provisions are amended and since GSTR-2B is to be looked at, this clarification does not hold good since 2B reflects the BoEs also.

In such a case it is better to bring forward the defense of sec 16(2)(aa).

AI Summary

Can Imported Goods' IGST ITC Be Claimed Without GSTR-2B Auto-Population? Section 16(2) & Rule 36(4) Explained. A discussion on a forum addresses whether Input Tax Credit (ITC) on Integrated Goods and Services Tax (IGST) paid for imported goods can be claimed if not auto-populated in GSTR-2B. Participants highlight that Section 16(2) and Rule 36(4) amendments require supplier invoice details in GSTR-1 for ITC claims, but this does not apply to Bill of Entry (BoE) for imports. Experts suggest that ITC can be claimed based on BoE, as it falls under 'any other document' category, and advise raising a ticket with GST support for further clarification. A circular clarifies that ITC restrictions apply only to supplier-uploaded invoices, supporting the claim for IGST on imports.