MEIS Scrip, Goods and Services Tax - GST

[Kaustubh Karandikar]

XYZ had obtained MEIS licence and the same is used for payment of customs duty. In financials, they had considered it as income under head other revenues - Export Incentives.

1) Is ITC required to be reversed on it.

2) Is it required to be shown anywhere in GSTR - 1 or GSTR - 3B?

Posts / Replies

[YAGAY andSUN]

Since, you have not sold MEIS but used in paying off customs duty through it therefore in our view, there is no requirement to reverse the ITC.

[Ganeshan Kalyani]

The element of supply is absent in this case. Hence, GST is not applicable.

[Ganeshan Kalyani]

In my view, reversal of ITC is also not required.

[KASTURI SETHI]

I support the views of both experts. It being out of GST, not required to be shown in GSTR-1 and GSTR 3B.