IGST AMOUNT SHOWN AS DUTY FOREGONE IN BILL OF ENTRY FOR GOODS NOT ATTRACTING IGST

[Raghunandhaanan rvi]

Sir,

We filed a bill of entry for the clearance of goods under the EOU notification. As per the Notification, BCD and IGST are exempted. Even otherwise, IGST is unconditionally exempted for the imported goods under IGST exemption notification 02/2017. In the bill of entry, we declared the relevant Notification No. 02/2017 IGST for exemption of IGST.

My question is, when the bill of entry is under EOU notification, the IGST amount is shown as duty foregone, which is incorrect since the product does not attract IGST. Will you please clarify?

[Shilpi Jain]

To answer your query, it would be required to know what difference would it make whether the exemption is taken under the EOU notification or the general IGST exemption notification?

Is it application of rule 96(10)?

[Shilpi Jain]

Also, in your case notification 02/2017 is mentioned and not 50/2003. So the exemption is as per the general IGST exemption notification only right?

[KASTURI SETHI]

No ramifications at all. It will be treated as a technical error.

[Ganeshan Kalyani]

I agree with the views of the expert.

[Raghunandhaanan rvi]

Thank you, experts, for your valuable information

AI Summary

IGST exemption: recording IGST as duty foregone in a bill of entry is a technical error without substantive consequence. Showing an IGST amount as duty foregone in a bill of entry for goods exempt from IGST is a technical, procedural error that does not affect the substantive exemption; when exemption is properly available under the relevant IGST exemption notification, the exemption remains effective even if the bill of entry records IGST as duty foregone, though correct notification citation and filing practice should be observed.