We have manufacturing of Pharmaceutical Machinery & Equipment registered under GST Act. We have imported free bottle sample from our customer for machine trial purpose. Customer has shipped bottle sample declaring a value. While clearing the material, our custom authority has charged us Custom duty, IGST on assessable value declared by our customer.
Our query is that can we avail IGST credit in above case since we are not paying any material cost to our customer. It is free of cost however we have paid custom duty & IGST as Charged by our custom department for clearance of the Goods (Sample).
Debate on IGST Credit Eligibility for Free Sample Imports in Pharmaceutical Machinery Trials: Supply Definition and ITC Rules Explored. A company involved in manufacturing pharmaceutical machinery imported free bottle samples for machine trials, incurring customs duty and IGST. The discussion revolves around whether IGST credit can be claimed despite no material cost being paid. Opinions vary; some argue IGST credit is claimable since IGST was paid, while others contend that without consideration, it doesn't qualify as a supply, thus no credit. The debate references various sections of the GST and IGST Acts, with differing interpretations on whether the transaction qualifies as a supply and if ITC is applicable. Participants discuss legal provisions and implications for claiming ITC. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
