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IGST CREDIT ON IMPORT OF GOODS DEC'23

Varun (Proprietor) (89 Points)

17 January 2024

Case :

Date of Machine import Invoice from Other country is Dec'23.

Bill of Entry Date 05 Jan 2024, ( Machine reached in India on 12th Jan'2024).

ICEGATE REFERENCE DATE 11 Jan 2024.

IGST Credit paid on import of Goods gets AUTO POPULATED IN GSTR 2B OF DEC'23.

I wants to file GSTR 3B OF DEC'23 NOW.

Question 1. Can i get / AVAIL IGST Credit in GST 3B OF DEC'23. ? as it has been auto populated in Dec'23 GSTR 2B AND GSTR 3B OF DEC'23.

Question 2 : It also gets auto populated in GSTR 2A OF JAN 24. Where to show IGST CREDIT , WETHER IN GSTR 3B OF DEC'23 OR JAN'24 ?

Can anyone please help on urgent basis ?

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10 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 17 January 2024

On Jan 2024...

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Varun (Proprietor) (89 Points)
Replied 17 January 2024

Thanks for Info.

But ICEGATE processed it on 11 Jan'24, hence IGST GETS AUTO POPULATED IN DEC'23 GSTR 2B.

ALSO MY IMPORT INVOICE PERTAINED TO DEC'23, I SHOULD GET MY IGST PAID CREDIT IN DEC'23 ITSELF.

Can anyone please reply ?

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 17 January 2024

Yes, Your invoice in Dec and 2b shown also in dec.
But, Material received in Jan.
As per receipt of goods the ITC is eligible in Jan.
So, You can claim ITC in Jan.
It's can't be claim in Dec...

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 17 January 2024

Originally posted by : Varun
	Thanks for Info. But ICEGATE processed it on 11 Jan'24, hence IGST GETS AUTO POPULATED IN DEC'23 GSTR 2B. ALSO MY IMPORT INVOICE PERTAINED TO DEC'23, I SHOULD GET MY IGST PAID CREDIT IN DEC'23 ITSELF. Can anyone please reply ?

If Your statement is correct then reverse the ITC in Dec GSTR 3b and Claim the ITC in Jan GSTR 3b...

For GSTR 3b of Dec :

4 (B) (2) - Others

For GSTR 3b of Jan :

4(D)(1) ITC reclaimed which was reversed under Table 4(B)(2) in earlier tax period

Varun (Proprietor) (89 Points)
Replied 17 January 2024

Ok, it means data reported by ICEGATE is incorrect fetched at GSTR 2B . It needs to be addressed by ICAGATE, AS IT WILL POP UP RED MESSAGE IN BOTH GSTR 3B OF DEC'23 AND JAN'24, IF I DO RECTIFICATION AS PER YOUR MESSAGE.

It seems it will be a common problem for all the large taxpayers then.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 17 January 2024

I'm not told it's incorrect by ICEGATE...

I'm told the material received in January then ITC is eligible in January...

Varun (Proprietor) (89 Points)
Replied 17 January 2024

Ok We need to see actual definition of import and its IGST CREDIT eligibility based on Import definition

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 17 January 2024

Originally posted by : Varun
	Ok We need to see actual definition of import and its IGST CREDIT eligibility based on Import definition

In GST,

If any purchased goods received in the next month then ITC is eligible in the month of receipt...

CA Raj Doshi (Practising CA) (8924 Points)
Replied 20 January 2024

Varun ji. The day you pay the IGST to customs, on that day you are eligible for igst refund. All other dates are irrelevant. So eligible only in Jan month. Government ko igst ke paise diye Bina December mein credit le lenge toh logically galat ho jayega.

VIRAAJ VASHISHTH (81 Points)
Replied 20 January 2024

IGST: A Detail Study

IGST stands for integrated goods and services tax. IGST is one of the three components of Goods and Service Tax. An Act to make a provision for levy and collection of tax on inter-State supply of goods or services as well as on imports/exports or both. Let's understand IGST with an example of cashew.

Cashew nuts attract an IGST of 5% in case of interstate transfer. So, if cashew nuts are being sold from Delhi to Agra, traders in Agra will pay IGST, traders in Delhi will collect it and they pay it to the government. The IGST is governed by the IGST Act. Under IGST, the body responsible for collecting the taxes is the Central Government. IGST tax is levied when there is an inter-state transfer of goods and services. When GST was introduced by the central government in July 2017, the idea was to subsume all the various indirect taxes into one. For instance, if a trader from West Bengal has sold goods to a customer in Karnataka worth Rs.5,000, then IGST will be applicable as the transaction is an interstate transaction. If the rate of GST charged on the goods is 18%, the trader will charge Rs.5,900 for the goods. The IGST collected is Rs.900, which will be going to the Central Government. After the collection of taxes, it is further divided among the respective states by the Central Government.

IGST numerically equals= CGST+SGST. It is a destination-based tax and it will accrue to the importing state. It lowers the tax burden by taxing inter-state transactions only once....

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