ITC of IGST paid on import of goods_URGENT

This query is : Resolved

Pragati Sharma (Querist)
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09 July 2020 The firm imported COVID goods worth Rs. 5 Crore.
The IGST @5% at the time of import was paid on Assessable Value of @5000 per unit of product. The original costing was Rs. 3000 per product.
However, the products were sold at Rs. 2000 per unit and IGST@5% was charged on it. The goods were sold at loss of Rs. 1000 to costing.
There is huge ITC of Rs. 20 Lacs IGST standing in my credit ledger at the end of June 2020.
Can i get refund of this excess IGST credit reflecting in my books?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 July 2020 You can't claim refund of such ITC available.

Pragati Sharma

Pragati Sharma (Querist)
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10 July 2020 Thank you Sir, i have another doubt.
The firm is in trading business and other than COVID19 supplies, also deals in many other products. It won't continue with COVID19 supplies any further. The remaining products are purchased from India and will continue their trading.
Can the firm use the pending ITC of 20 Lacs against the output tax liability of other products in which it will continue trading?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 July 2020 Yes, firm can use the pending ITC of 20 Lacs against the output tax liability of other products in which it will continue trading.

Pragati Sharma

Pragati Sharma (Querist)
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10 July 2020 Thank you for your guidance Sir.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 July 2020 Welcome....................

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