Import igst credit

ITC / Input 605 views 3 replies

Shivani

Learner

1881 Points Joined December 2012

Dear Friends

X of Punjab imports goods of Rs. 10000.

he pays BCD 12% Rs. 1200

IGST 18% (rate assumed) 18% x 11200 = 2016

Importer Cost = 10000+1200+2016 =13216

Now X sells goods to Y in Punjab as under:

Cost 13216

Add Margin: 31784

Total 45000

CGST 9% 4050

SGST 9% 4050

Invoice Value 53100

My question is will Y get credit of IGST 2016 or will this credit of IGST will be available to importer X and he will pay CGST and SGST after adjusting IGST against CGST and SGST?

Y of course will get credit of CGST and SGST paid by him.

Also i wish to ask as to whether there is any credit available in respect of BCD under any law to anyone?

regards

Replies (3)

Madhukar N Hiregange

Chartered Accountant

39039 Points Joined September 2008

When you look at costs- the credit available is not part of cost- therefore in the example the cost is not 13216 but only 11,200.- Academic point Important for acoc*ntants.

When X imports he is NOT eligible for BCD. Only IGST 2016 available as credit for setting off against CGST first and then SGST. In this case the 2016 will be used to pay CGST and balance Paid in casg SGST willbe paid fully in cash. .

LAKSHAY

student

29 Points Joined November 2015

Credit of IGST amounting to Rs. 2016/- will be available to X.
X will pay CGST and SGST to respective government after adjusting credit of IGST. It should be noted that credit of IGST will be first available to CGST and then to SGST. In other words, X will pay CGST of Rs. 2034 ( ie. Rs. 4050 - Rs. 2016) and SGST of Rs. 4050.
Y will get credit of CGST and SGST paid by him.
No credit will be available for BCD.