Input Tax Credit For Imports

The GST system provides a temporary tax credit for  IGST and GST offset taxes paid during the import of goods into India. From 1 July 2017, after the implementation of GST, all goods imported into India will be treated as interstate supply. Therefore, IGST applies. 

Importers Need GST Registration 

From July 1, 2017, the introduction of GST will change the procedure for importing goods into India. The new GST invoice requires the importer’s GST IN to track IGST collection, GST compensation tax, and input tax credits. Therefore, all importers must apply for GST registration before the goods arrive in India. 

Filing GST Bill of Entry

With the introduction of GST, the invoice for the entry will be modified to include the importer’s GST. Importers with GSTIN can indicate GSTIN on their important documents. Importers with a temporary GSTIN can indicate a temporary GSTIN to the GSTIN.

All goods arriving in India after 1 July 2017 will be subject to the new regulations and will be required to pay IGST and GST offset taxes.

Calculation of Import Of GST  

Input Tax Credit For Imports

IGST and GST compensation CESS will be billed for imported goods. The value of imported goods is the following aggregation. 

Value of import articles by customs act  1962

Customs supported by the Customs act 1962 charged, the value of imported goods is used to calculate GST compensation CESS and IGST, and also including education cess or higher education cess as well as anti-dumping and safeguard duties.  However, IGST does not add a GST compensation certificate to the value to calculate. 

BCD, the Ministry of Education, IGST may be applicable to the majority, but CVD, SAD, or GST compensation CESS is also applicable to some products. 

Input Tax Credit For Imports

Input Tax Credit For Imports

An input tax credit for Integrated Tax (IGST) and GST Compensation Cess will be available to importers and later to supply chain recipients. To claim a temporary consumption tax credit for IGST and GST Compensation Cess, the importer must provide the GST registration number (GSTIN) on the tax return.

In addition, GSTR-2 must be submitted by the importer along with the GST tax credit and other relevant documents in order to claim the GST tax credit. It is important to note that the Basic Customs Duty (BCD) paid cannot be claimed as a tax credit.