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Foreign purchases in gst returns

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Hello Experts,

I have recently made some overseas purchases for which USD/INR conversion has taken place and my bank has finally charged me in INR for the same. I have recevied an invoice from the overseas dealer. How do I compute such purchases in my GST Returns? Once the goods enter India, I am paying customs duty and IGST as per the Bill of Entry.

Technically, it is supply from an unregistered dealer (URD), so am I liable to pay reverse charge on it? If not, can someone explain the method of computation for such purchases?

 

Thanks.

Replies (2)

Just leave it for now, treat it as expense while filing IT returns.

 

AFAIK there is no Input tax credit for purchases from outside the country anyway. So why complicate an already complicated system? 

 

Is the IGST is on the duty alone? or the whole amount? How can they charge IGST for purchases outside the country... 

Thanks.

IGST is charged on the assessable value.

Assessable Value = Value of goods + BCD (Basic Customs Duty)

Eg. If the value of goods in Rs. 1000/-, and BCD is 10%, then the Assesable value becomes Rs. 1100/-

If the IGST for that rated value is 5%, then the total IGST amount becomes Rs. 55/-.

Total amount that goes to the government is Rs. 100 (BCD) + Rs. 55 (IGST) of which the IGST can be claimed for inputs.


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