ITC ON FREE IMPORT CAN BE TAKEN OR NOT ?

[ARVIND JAIN]

ITC of IGST paid on the import of samples received without consideration is admissible? if we use it for furtherrance of business. We have copy of Invoice  - challan paid by us - BOE but no import payment as it is free sample.  Section 17(5)(h) covers condition where free smple are distributed by supplier and not applicble in our case.

[Sadanand Bulbule]

Yes. You are absolutely right.

[Taxsrassociate]

ITC of IGST paid on free imports can be availed if the goods are used in the course or furtherance of business and IGST is duly paid at the time of import.

Payment of consideration is not a condition for availing ITC on imports.

However, as per Section 17(5)(h), ITC is not admissible if such free imported goods are disposed of as gifts or free samples.

Thus, end-use of goods is the deciding factor for ITC eligibility.

For any query, connect Tax S R associate at email: [email protected]

[ARVIND JAIN]

Thanks for the detailed response, I am of the same view

[PAWAN KUMAR]

IGST paid on bill of entry in customs, is eligible ITC, payment condition not required in this case as per my view.

[Shilpi Jain]

Can be claimed. Many conditions under GST for claiming ITC do not apply to ITC related to BoE.

[ARVIND JAIN]

Thanks to all for the prompt response 

AI Summary

ITC on IGST-paid imported free samples is claimable if the goods are used in business and not disposed as gifts.
IGST paid and evidenced on the bill of entry at import is the operative condition for claiming Input Tax Credit on goods received without consideration; payment of consideration to the supplier is not required. ITC is precluded where such free imported goods are disposed of as gifts or distributed as free samples, so the end-use of the goods determines eligibility.