TaxTMI 
TaxTMI 
ITC ON IMPORT
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....TC ON IMPORT<br> Query (Issue) Started By: - GURURAJAN RAMASAMY Dated:- 16-10-2024 Last Reply Date:- 22-10-2024 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>ITC can be claimed on the basis of BOE before receipt of good in to the business place from Port of Import? Reply By KASTURI SETHI: The Reply: Section 16 of CGST Act should be read with Rule 36 of CGST Rules and Section 20(iv) of ....
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....IGST Act. Answer is NO. Reply By Shilpi Jain: The Reply: The requirement in the law is receipt of goods. It does not mention that the goods need to be received at the registrered place of business. So there is a possibility of taking a view that the moment goods are cleared and constructively in the custody of the importer, credit is eligible. Reply By KALLESHAMURTHY MURTHY: The Reply: Dear S....
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....ir, ITC cannot be availed based on invoice or BOE, goods must be received at the designated place indicated in the invoice and not elsewhere. Reply By KASTURI SETHI: The Reply: Sh.Kalleshamurthy Murthy Ji, Sir, Your reply is perfect. Reply By VIPUL JHAVERI: The Reply: ITC IS AVAILABLE ON ITEMS USED FOR BUSINESS OR "INTENDED TO BE USED" FOR BUSINESS TWO PLACES AND TRANSIT INVOL....
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....VED HERE - PLACE- A PORT OF IMPORT PLACE B-Business Place and Transit - is remarked for ITC to avail basically once duty is paid - ownership shifts to importer and if goods are lost in transit importer has to bear its risk - so once ownership rights dwells on importer on release from port - BOE is valid document to avail ITC (rule 36(1)(d)) S-16(2)(b)- for received of goods in explanation pr....
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....ovide for deeming "received of goods" with this background and understanding, IMHO getting ITC seems possible sans physical inward of goods at "business place" as goods are "already received" and valid document "BOE" already with importer Reply By KASTURI SETHI: The Reply: Sh. Vipul Jhaveri Ji, With reference to your post on the subject issue, my views a....
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....re as under :- ITC IS AVAILABLE ON ITEMS USED FOR BUSINESS OR "INTENDED TO BE USED" FOR BUSINESS : Agree. It is as per Section 16 TWO PLACES AND TRANSIT INVOLVED HERE - Agreed. PLACE- A PORT OF IMPORT PLACE B-Business Place and Transit - is remarked for ITC to avail: This is the issue. basically once duty is paid - ownership shifts to importer and if goods are lost in transit importer has t....
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....o bear its risk - so once the ownership rights dwells on importer on release from port - BOE is valid document to avail ITC (Rule 36(1)(d) ) : Agree. S-16(2)(b)- for received of goods in explanation provide for deeming "received of goods" with this background and understanding, IMHO getting ITC seems possible sans physical inward of goods at "business place" as goods are "already received" and va....
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....lid document "BOE" already with importer : Do not agree. The 'deemed clause' is for special circumstances and NOT in a routine manner of taking ITC. Otherwise, practically, do you think there is no possibility of misuse before reaching the goods in the business premises ? The graph of availing ITC fraudulently has skyrocketed in GST regime. Facts and figures on the records of Govt. speak....
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..... Otherwise, technically, ITC is not admissible in this scenario. I welcome contrary views on this issue, if any. Disclaimer : These are my personal views and meant for academic interest and not meant for any court proceedings. Reply By KASTURI SETHI: The Reply: In continuation of my post, I add as under :- The Explanation to clause (b) (i) of Section 16 (2) of CGST Act, inter alia, covers t....
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....he receipt of goods in the 'bill-to-ship-to ' model and the phrase, 'or otherwise' signifies 'on his own account'.<br> Discussion Forum - Knowledge Sharing ....