Imports in Transit During Merger: Who Is the Recipient?

[Abhijeet Mane]

Import consignment is in transit; before BOE filing, the recipient merged and its GSTIN stands cancelled. Should the transferee be treated as importer of record, and can BOE/IGST be filed under its IEC/GSTIN based on the NCLT order?

Is ITC of IGST available to the transferee—what documents are needed?

Any specific circular/case law on goods-in-transit during merger and practical documentation accepted by Customs?

[Raam Srinivasan Swaminathan Kalpathi]

To the querist

Kindly get the BOE amended in the name of transferee at Customs. Of course, practical experience is that this is easier said than done. You may ask your CHA to get this organised by filing the proper documents with Customs.

[Sadanand Bulbule]

If the merger took effect before filing the Bill of Entry, Customs can treat the transferee as the importer of record and permit filing of BOE and payment of IGST under its valid IEC/GSTIN on the strength of the NCLT order, ROC records and a request under Section 149 of the Customs Act.

IGST ITC is available to the transferee provided the BOE bears its GSTIN and is accepted in IMS, supported by the BOE, proof of IGST payment and the NCLT merger order.

[Shilpi Jain]

If the ITC of BOE is appearing in the IMS of the transferor Co. could consider accepting the ITC and transferring it through ITC-02

AI Summary

Imports in transit during merger: transferee may be treated as importer and claim IGST ITC if BOE bears its GSTIN. Where a merger takes effect before Bill of Entry filing, the transferee may be treated as the importer of record and permitted to file the BOE and pay IGST under its IEC/GSTIN on the basis of the NCLT merger order, ROC records and a request under Section 149 of the Customs Act. IGST input tax credit is available if the BOE bears the transferee's GSTIN and is accepted in the IMS with supporting BOE, proof of IGST payment and the NCLT order; where ITC appears under the transferor, transfer via ITC-02 may be considered.