GST ON IMPORT

The defination of input tax in relation to a registered person also includes the integrated tax charged on import of goods.
Thus input tax credit of the integrated tax paid at the time of import shall be available to the importer and the same can be utilised by him as input tax credit for payment of taxes on his outward supplies.

As per section 7 & 5 of IGST r/w Section 3 of custom tariff Act 1975 , IGST is levied on import of Goods . which is paid under RCM .

And of we read the Defination of Input tax , the credit can be availed the tax paid on RCM .
hence credit can be availed .

Now come to refund :
refund can be claimed of credit for the same not availed . Of read the Defination of Reverse Charge u/s 2(98) Liability to pay Tax by Recepeint. & As per Section 49 r/w Section 54 the refund can claimed from cash ledger.

So in brief either ITC can be availed or Refund can be claimed.

Sorry ,for above reply in section to refund of IGST because in import the IGST is not paid into Electronic Cash ledger. Refund cannot be claimed

Dear pankaj ji,
i have doubt on your reply that IGST levied on import is not paid under RCM, the only part on which RCM to be paid is on Ocean freight and not on the total IGST amount. please clarify.

DEAR YASH

 

IN TERM OF SECTION 7(2) IGST ACT PROVIDES THAT SUPPLY OF GOODS IMPORTED INTO THE TERRITORY OF INDIA, TILL THEY CROSS THE CUSTOM FRONTIERS OF INDIA, SHALL BE TREATED TO BE SUPPLY OF GOODS IN THE COURSE OF INTER STATE TRADE.

THUS ALL IMPORTS SHALL BE DEEMED AS INTER-STATE SUPPLIES & ACCORDINGLY IGST SHALL BE LEVIED IN ADDITION TO CUSTOM DUTIES.THE PROVISO TO SECTION 5(1) OF IGST ACT PROVIDES THAT THE IGST ON GOODS IMPORTED INTO INDIA SHALL BE LEVIED & COLLEECTED IN ACCORDANCE WITH THE PROVISION OF SECTION 3 OF CUSTOMS TARIFF ACT,1975.

SO YOU CANNOT RELEASE THE GOODS FROM CUSTOM WITHOUT PAYING DUTIES & IGST. 

NOTE : RCM ON OCEAN FREIGHT HAS BEEN PRESCRIBED BY NOTIFICATION 10/2017 & 8/2017 IGST R/W CORRIGENDUM TO IGST NOTI. NO. 8/2017.

HENCE RCM OF FREIGHT (OCEAN) IS COVER UNDER SECTION 9(3)

& IGST IS APPLICABLE  ON  VALUE OF GOODS + BCD

 

HOPE I ABLE TO CLARIFY YOUR DOUBTS

Dear Pankaj ji,
Thanks for your kind reply.

DEAR YASH

YOU ARE ALWAYS WELCOME