Reversal of ITC if IGST

We Indian importer took full itc credit of igst per bill of Entry. Regulatory issues stop commissioning permanently. How and what reversal of itc availed, although full payment to exporter

Pl guide

Thanks

Jayanta

Replies (4)
Quick Summary
An Indian importer has claimed full Input Tax Credit (ITC) on IGST for imported equipment based on the Bill of Entry, and payment has been made to the exporter. However, due to regulatory issues, the equipment cannot be commissioned. The importer is seeking guidance on whether and how to reverse the availed ITC, especially since ITC is typically linked to the commissioning of machinery. The advice suggests that if the goods are not returned, reversal may not be necessary, as the condition for commissioning isn't explicitly stated for ITC availment in Section 16, unless the goods are subsequently returned.

Your query is not clear

Your query is not clear

Sirs,

To explain my query-

Indian Importer has imported one equipment and based on Bill of Entry-taken the full input tax credit of IGST . Payments were also released. But, commissioning can not be done -as Govt now refuses permission. ITC can be taken when it is commissioned. Here, commissioning will never take place. Imported item is lying at site.

Then should Importer require to reverse ITC taken along with interest from date of availment till date.

Trust I am clear now

Rgds

Jayanta

 

 

Section 16 says conditions for availing ITC and section 17(5) is about blocked credit.

 

I think there is no condition for commissioning machinery to avail ITC suppose if you return the machinery then you should reverse the ITC if not no need to reverse the same.

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