Shivani (Learner) 18 October 2016
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:
Add Margin: 31784
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?
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Madhukar N Hiregange (Chartered Accountant) 24 October 2016
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) 27 October 2016