Igst paid on import related

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This discussion clarifies whether a business importing medical surgical equipment for resale in India can claim Input Tax Credit (ITC) on the IGST paid during import. The consensus is yes, provided that GST is subsequently charged on the sales of these goods. The IGST credit can be used to offset future GST liabilities on output supplies, including CGST and SGST, when the final supply is taxable. This is permissible even when selling to doctors or hospitals who are then charged GST.

deepak

deepak (Querist)

02 May 2020 our one client import of Medical surgical equipment for resale purpose in india. He has paid igst on import. So query is that can he take ITC aganist igst paid on import?

CA Altamush Zafar

CA Altamush Zafar (Expert)

02 May 2020 Yes he can provided he pays GST further on his sales

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

02 May 2020 Yes , you can set of ITC on IGST on Gst liability.

deepak

deepak (Querist)

03 May 2020 So he can use import igst ITC against cgst and sgst tax liability within sale of maharashtra?

PAWAN KUMAR

PAWAN KUMAR (Expert)

03 May 2020 Yes igst paid on import is admissible as itc and you can set off this itc against gst liability on output supplies.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

05 May 2020 When final supply is exempt, credit of GST paid on inputs would not be available. Therefore, if health services provided by a hospital are exempt, the GST the hospital pays to its vendors (i.e., manpower suppliers or pharmaceutical suppliers) would not be credited to the hospital. This follows the simple principle that credit is allowed on inputs only if tax is charged on the output.

However, there are cases when final supply may be exempt but credit is still allowed – exports, for example.

Section 16(4) provides that in respect to any invoice, credit must be taken before the filing date for the September return the following year (ordinarily 20 October) or the filing date for the annual return the next year (ordinarily 31 December), if filed earlier. This means that a taxpayer would roughly get a minimum of 6.5 months for an invoice issued by a supplier on the last day of any financial year (i.e., 31 March) and a maximum of 18.5 months for an invoice issued on the first day of any financial year (i.e., 1 April) to claim credit.

deepak

deepak (Querist)

05 May 2020 Our case a dealer import of surgical goods and sale to the doctor or hospital and charge the gst to the doctor and hospital. So this case can we take ITC on igst paid on import?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

05 May 2020 Yes definitely you can...

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