IMPORT TRANSACTION ENTRY

[SURYAKANT MITHBAVKAR]

We have imported material wherein Bill of Entry date is 31.03.23. We have paid custom duties including IGST on 10.04.23. Examination & inspection has been done on 13.04.23 by custom authority & we have received the material on 14.04.23.

In our GSTR-2B for Mar-23 the above transaction is not reflected however it may reflect in the next month i.e. April-23 with bill of entry dated 31.03.23. In this case, can we consider the above transaction in current year i.e. 2023.-24 or in the previous year i.e. 2022-23 ?

[Alkesh Jani]

Shri

I am of the view that this transaction is to be shown in the current F.Y. i.e. 2023-24. As the Bill of entry is finally assessed on 13.04.2023 and ITC can be taken on receipt of the goods i.e. on 14.04.2023.

Bill of Entry is a declaration subject to assessment of the same by the proper authority.

Thanks

[Padmanathan KV]

I agree with Alkesh Ji. Since materials are received only in April 2023, ITC becomes eligible only in April 2023. Therefore, it has to be reported in GSTR-3B of April 2023. The accounting of the said import in books can be done in April 2023, otherwise there will be a reconciliation difference between books and GSTR-3B.

[Amit Agrawal]

I agree with my professional colleagues that subject ITC can be availed in April, 23 only.

P.S. There is no legal requirement that such Bill of entry should reflect in Form GSTR-2B before availing ITC there-against.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[KASTURI SETHI]

Bill of entry passed by the Customs Officer is an Assessment Order. Agree with all experts.

[Ganeshan Kalyani]

Sir, if BOE is dated 31.03.2023 then it should appear in 2B of Mar-23. Further, dept. held a view in one of my case is that if BOE date is 31.03.23 then ITC to be claimed in Mar 23. However, this view is debatable as Sec. 16(2) states that goods should have been received as one of the condition to claim ITC. Since, in this case the goods is received in Apr 23 the same will be account in Apr 23 and also ITC would be claimed in Apr 23.

AI Summary

Input tax credit timing: claim based on receipt and assessment of imported goods, not solely on Bill of Entry date. Entitlement to Input Tax Credit on imports depends on satisfaction of statutory conditions-principally completion of customs assessment and physical receipt of goods-so credit should be claimed in the tax period when assessment and receipt occur rather than solely by the Bill of Entry date, and GSTR-3B reporting and accounting should be aligned to that period.