Import payment - GST credit

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This discussion explores whether a business can claim Goods and Services Tax (GST) input tax credit (ITC) on imported goods shipped under a Delivered Duty Paid (DDP) arrangement. Although the importer's GST number appears on GSTR 2A, the seller is responsible for paying the GST. The key question is eligibility for ITC when the importer hasn't directly paid the GST to the supplier. The response clarifies that under Section 16 of the CGST Act, a crucial condition for claiming ITC is the recipient's payment of the supply value along with the applicable tax to the supplier. Therefore, if the importer did not make the IGST payment to the seller, they are generally not eligible to claim the ITC, unless the payment made to the seller explicitly includes GST.

badrinarayanan

badrinarayanan (Querist)

21 April 2021 While making Import of goods - DDP shipment. (i.e) seller will bear the GST. However my GST no. is given in GST portal and the same is reflecting in GSTR 2A.
Since the GST is not paid by me, Am i eligible to claim GST credit on the same.

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)

21 April 2021 Hello,

Conditions to Claim ITC under GST Act is prescribed u/s 16 of CGST Act,

As per of the Proviso of Sec 16(2) which States -
"Provided further that where a recipient fails to pay to the supplier of goods or
services or both, other than the supplies on which tax is payable on reverse charge basis,
the amount towards the value of supply along with tax payable thereon within a period of
one hundred and eighty days from the date of issue of invoice by the supplier, an amount
equal to the input tax credit availed by the recipient shall be added to his output tax
liability, along with interest thereon, in such manner as may be prescribed:

Provided also that the recipient shall be entitled to avail of the credit of input tax on
payment made by him of the amount towards the value of supply of goods or services or
both along with tax payable thereon"

So there is a condition that Recipient should pay Value of Goods/Service alongwith Tax to the Supplier.

So as per my knowledge & understanding since you are not paying the IGST Amount to Supplier you wont be allowed to Claim the ITC.

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CMA Poornima Madhava

CMA Poornima Madhava (Expert)

21 April 2021 If the payment that you make to the seller includes GST, then you may be able to claim input tax credit on such purchases too.

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Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

28 October 2026 For imports the ITC document is the Bill of Entry (Rule 36(1)(d)) and the 180-day payment proviso doesn't apply; ITC goes to the importer whose GSTIN is on the BoE, so if the DDP seller paid the IGST on your BoE, check the contract — if its cost is in your price, you can claim it.

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