Import input query.....

Yes, a recipient can claim Input Tax Credit (ITC) for IGST paid on imported goods, even if those goods are temporarily in the possession of a Customs House Agent (CHA).

Under the GST law, the condition of "receipt of goods" is satisfied in "bill-to-ship-to" scenarios or when goods are delivered to a person acting as an agent or representative on the recipient's direction.

Key Provisions

• Deemed Receipt: According to the explanation under Section 16(2) of the CGST Act, a registered person is deemed to have received the goods if they are delivered by the supplier (or in the case of imports, cleared through customs) to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during the movement of goods. Since the CHA acts as an agent clearing goods on your behalf, possession by the CHA is legally considered "deemed receipt" by the recipient.

• Eligibility: To claim the ITC, you must satisfy the following conditions:

  1. You must be in possession of the Bill of Entry or any similar document prescribed under the Customs Act that evidences the payment of IGST.

  2. The goods must be used or intended to be used in the course or furtherance of your business.

  3. You must have furnished the required GST returns (Form GSTR-3B).

  4. The details of the import must be reflected in your GSTR-2B (auto-populated via ICEGATE).

In summary, the temporary custody of goods by a CHA does not disqualify you from claiming ITC, as the law recognizes this as a delivery to your authorized agent.

Understanding GST ITC on imports

This video provides further context on the requirements for "actual receipt" of goods and the implications for ITC claims under Section 16.