ITC on differential customs duty paid

[Kaustubh Karandikar]

Goods imported in the year 2021 against which differential customs duty including IGST paid in 2023. Can ITC be claimed on the IGST element against such differential customs duty paid pertaining to goods received in the year 2021 and original bill of entry also is of the year 2021?

[Padmanathan KV]

In my opinion, ITC can be claimed as restriction under section 16(4) applies only to invoice and debit note, and not to bill of entry.

[Ganeshan Kalyani]

I agree with the view of Sri Padmanathan Sir.

[KASTURI SETHI]

Dear Sir,

What is the date of re-assessment or assessment of the bill of entry ?

Passed bill of entry is assessment order.

The date of Assessment/re-assessment of bill of entry is relevant date in this scenario.

[Shilpi Jain]

Generally differential duty and igst is paid by TR-6 challan. As suggested by Kasturi sir if the bill of entry is re-assessed then the document for availing credit becomes the bill of entry.

In such cases, credit can be taken even now.

In case it is paid only through tr6 challan, suggested to make attempts to get the bill of entry updated.

If officer denie, make an intimation to the department so that credit is not denied subsequently in light of the custom circular which brings out that tr6 challan is not a prescribed document under GST to take credit

[KASTURI SETHI]

I fully agree with Madam Shilpi Jain.

AI Summary

Input tax credit on IGST may be available if bill of entry reassessment or amendment records the duty as supporting document.
Whether input tax credit on IGST paid as differential customs duty later than the import year depends on the assessment/re assessment status of the bill of entry: a reassessed or amended bill of entry can serve as the document to claim ITC, whereas payment solely by TR 6 challan is not a prescribed GST document and may be insufficient without updating the bill of entry or obtaining reassessment.