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Claiming itc for import of services.

27 March 2019

I am using US-based autoresponder service for my business. It comes under import of services. So I will have to pay IGST for that. Can I claim full ITC since I am using the service for furtherance of business?

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10 Replies

CA Charmie Jhaveri (Associate) (163 Points)
Replied 27 March 2019

Yes. u can claim ITC after deducting GST collected in furtherance of business. However, ITC will have to be paid and ITC shall be taken in the next month.

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Gnana Prakash (31 Points)
Replied 27 March 2019

Originally posted by : CA Charmie Jhaveri
	Yes. u can claim ITC after deducting GST collected in furtherance of business. However, ITC will have to be paid and ITC shall be taken in the next month.

Can you explain this a bit?

Let's say:

March

Export sales: Rs.30,000. I don't charge GST (without payment of taxes under LUT).

Intra-state Sale: Rs.1000 and charged 180 on that.

Import of service for Rs.5000 and I pay Rs.900 as IGST under RCM.

So I pay Rs.1080 GST for March GSTR-3B and claim Rs.900 as ITC while filing for April. Is that right?

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 27 March 2019

Originally posted by : CA Charmie Jhaveri
	Yes. u can claim ITC after deducting GST collected in furtherance of business. However, ITC will have to be paid and ITC shall be taken in the next month.

Yes... I agreed with....

Also You can claim same month...

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 27 March 2019

Originally posted by : Gnana Prakash
	Originally posted by : CA Charmie Jhaveri Yes. u can claim ITC after deducting GST collected in furtherance of business. However, ITC will have to be paid and ITC shall be taken in the next month. Can you explain this a bit? Let's say: March Export sales: Rs.30,000. I don't charge GST (without payment of taxes under LUT). Intra-state Sale: Rs.1000 and charged 180 on that. Import of service for Rs.5000 and I pay Rs.900 as IGST under RCM. So I pay Rs.1080 GST for March GSTR-3B and claim Rs.900 as ITC while filing for April. Is that right?

You can claim that 900 on March GSTR-3B return (March GSTR-3B on or before 20th April)

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Gnana Prakash (31 Points)
Replied 27 March 2019

Originally posted by : RAJA P M
	Originally posted by : Gnana Prakash Originally posted by : CA Charmie Jhaveri Yes. u can claim ITC after deducting GST collected in furtherance of business. However, ITC will have to be paid and ITC shall be taken in the next month. Can you explain this a bit? Let's say: March Export sales: Rs.30,000. I don't charge GST (without payment of taxes under LUT). Intra-state Sale: Rs.1000 and charged 180 on that. Import of service for Rs.5000 and I pay Rs.900 as IGST under RCM. So I pay Rs.1080 GST for March GSTR-3B and claim Rs.900 as ITC while filing for April. Is that right? You can claim that 900 on March GSTR-3B return (March GSTR-3B on or before 20th April)

Does that mean I can claim it while filing March GSTR-3B next month? I am little confused here because the other person said that I can claim it next month which I thought would be during May when filing April GSTR-3B..

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CA Charmie Jhaveri (Associate) (163 Points)
Replied 27 March 2019

Yes. You can claim 900 for April. This is because, GST on imports in n RCM basis and when GST is paid on RCM basis, it has to be paid in cash. Later, you can take ITC of the same.

1 Like