Taking Credit of IGST Customs duty paid on import of goods

Procedure to avail the IGST Credit when import duty is paid by the exporter (seller) that is included in the price of the material imported.

Regularly we pay the customs duty and avail the IGST Credit from that duty.

But here exporter pays the duty and from which source IGST credit should be taken.

 

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To avail IGST (Integrated Goods and Services Tax) credit when the import duty is paid by the exporter (seller) and included in the price of the material imported, follow these steps: 1. *Ensure eligibility*: Verify that the imported goods are eligible for IGST credit. 2. *Obtain documents*: Get the following documents from the exporter (seller): - Bill of Entry (BoE) - Commercial Invoice (CI) - GST Invoice - Certificate of Origin (if applicable) 3. *Determine IGST amount*: Calculate the IGST amount paid on the imported goods based on the import duty paid by the exporter. 4. *Reverse charge mechanism*: Since the import duty is included in the price, you (the importer) are liable to pay IGST under the reverse charge mechanism. 5. *File GSTR-3B*: Report the IGST liability in your GSTR-3B return for the relevant month. 6. *Avail IGST credit*: Claim the IGST credit in your GSTR-3B return, ensuring that the credit is availed in the same month as the liability is reported. 7. *Maintain records*: Keep all relevant documents and records to support the IGST credit availed.

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