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.

AI Summary

Input tax credit for IGST on imported goods received without consideration: claimable only if IGST actually paid and proof produced Whether input tax credit of IGST paid on imported goods received without consideration is claimable when used for the furtherance of business: entitlement arises only where IGST has in fact been discharged at import and requisite documentary evidence of tax payment and importation (bill of entry, challan/payment proof, invoice) is available, in which case the ITC may be claimed; conversely, where no IGST has been paid at import, no ITC is available. Section 17(5)(h) (exclusion for free samples distributed by the supplier) is not engaged where the recipient received free samples from an external supplier.