Reversal of ITC if IGST

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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)

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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