sales invoice

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VIRAG KACHHIA (Querist)
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28 September 2010 while issuing retail invoice to the customer can we show import duty and vat separately in the invoice

please someone guide in this regards

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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29 September 2010 As per VAT rule, Only VAT has to be shown in tax invoice.

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VIRAG KACHHIA

VIRAG KACHHIA (Querist)
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30 September 2010 OK but what for retail invoice?

party has imported goods on which import duty has been paid now selling the said goods in retail can he show value of import duty and vat separately

Kindly guide in this regards

VIRAG KACHHIA

VIRAG KACHHIA (Querist)
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30 September 2010 kindly give the reference of section attracted if any

VIRAG KACHHIA

VIRAG KACHHIA (Querist)
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03 October 2010 thanks

VIRAG KACHHIA

VIRAG KACHHIA (Querist)
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01 December 2014 if we don't show (Basic+additional)Import duty then how the buyer would claim CENVAT Credit.

I am waiting for your expert opinion

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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23 July 2025 Great question! Let’s clarify how **import duty and VAT** should be treated on a **retail sales invoice**.

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### 1. Showing Import Duty on Retail Invoice

* When goods are imported, **import duty (Basic + Additional Customs Duty)** is paid at the time of import.

* This **import duty becomes part of the cost of goods** for the importer.

* However, **import duty is not a tax on sale**, so **it should not be separately shown as a separate tax component on a retail sales invoice**.

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### 2. Showing VAT on Retail Invoice

* **VAT (Value Added Tax)** is a tax on the **sale of goods** within the state.

* As per VAT law, **VAT must be shown separately on the invoice** as it is collected from the customer and paid to the government.

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### 3. How to handle Import Duty for CENVAT Credit?

* **CENVAT credit** on import duty is generally available to registered manufacturers/importers on inputs and capital goods.

* The **import duty paid at the time of import** is recorded in your books as part of the cost of goods.

* For **input service credit**, the invoice from the supplier or import documents showing import duty should be maintained, but you do **not show import duty separately on your sales invoice** to customers.

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### 4. Retail Invoice and Showing Import Duty

* For **retail invoices**, especially to end customers who are not registered dealers, showing import duty separately is **not required and generally not done**.

* Import duty is **embedded in the cost price**, and the selling price includes this cost.

* VAT should be separately shown as per tax laws.

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### 5. Legal/Rule Reference

* **Section 31 of the Central Goods and Services Tax Act, 2017 (CGST Act)** for GST invoicing rules (post-GST regime): Taxable value + GST shown separately.

* **VAT rules** require VAT to be shown clearly on invoices.

* Import duty is governed by Customs Act and does not need to be separately disclosed on retail invoices.

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### **Summary:**

| Item | Shown Separately on Retail Invoice? | Notes |
| ----------- | ----------------------------------- | ------------------------- |
| Import Duty | No | Included in cost of goods |
| VAT | Yes | Mandatory as per VAT law |

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If you want, I can help draft a sample retail invoice format that complies with these rules. Would you like that?

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