Import of Goods or services - Whether need to raise self-invoice?
Background - As per Section 31(3)(f) of the CGST Act, 2017, a registered person under GST Law needs to raise self-invoice in case all the following conditions are fulfilled.
1. Procurement of goods or services or both is made from a supplier who is not registered on the date of receipt of goods or services or both.
2. Such registered recipient is liable to pay the tax under Section 9(3) or Section 9(4) of the CGST Act.
Section 31(3)(f) of CGST Act is reproduce hereunder -
(f) a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both
Further, as per Section 9(3) CGST Act, registered person needs to be paid when he procures the notified categories goods or services or both.
Further, as per Section 9(4) CGST Act, registered person needs to be pay by registered person when he procures the any goods or services or both from unregistered person.
It should be noted that Section 9 is the charging section in CSGT Act.
Conclusion - In light of above discussion, following conclusions can be made
Import of Goods - IGST is charged under import of goods as per proviso to Section 5 of the IGST Act. Therefore, it can be said that IGST is not levied on import of goods as per Section 9 of the CGST Act. Therefore, it can be reasonably derive that self-invoice is not require to raise by importer of goods even though goods are procured from unregistered dealer.
Import of Services - In case of import of service, since IGST is levied under Section 9, self-invoice is mandatory for importer to raise and disclose the same in GST return.
GSTR return format requirement - It should be noted that, the above tax position can also be confirm by observation of GSTR 2 format, where for import of goods, self-invoice details needs not require to be provided, however in case of import of service, self-invoice needs to be provided.
[Note - Views expressed are strictly personal]