25 May 2020
Dear Experts, please provide a solution to my query.
A firm has imported goods from China and paid Custom Duty and GST at the time of clearance.
The bill send by the supplier was $5.00 per unit(Value = $5*Rs.75/$ = Rs 375 per unit) But at the time of clearance , customs takes the assessable value at Rs. 500 per unit and then charges custom duty and 18% gst. So we paid IGST=500*18% = Rs. 90 (IGST input)
We sold the goods to our customers at Rs. 200 per unit @18% GST (IGST output) = Rs. 36. The rate of tax at the time of import & sale is same @18%
Due to the difference of assessable value under GST & customs, we are having extra input of Rs. (500-200)*18%=IGST Rs. 54.00.
We have sold 1 Lacs unit during the FY 2019-20, outstanding extra credit of IGST = Rs. 54 Lacs.
Query 1 : Whether there is any method by which refund of extra igst paid at the year end can be claimed as refund?
Query 2: Suppose we close down the trading of this product and continue with trading of other remaining products under the same gst registration. Whether the accumulated IGST input of Rs. 54 Lacs can be used against liability of the other products sold?
CAclubindia
