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TMI BlogITC IMPORT AGAINST EPCGX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear experts, We import machinery against EPCG licence. IGST paid throught EPCG licence. Can we take ITC of IGST ? if yes please give us reference. Zulfikar B. Vohra - Reply By KASTURI SETHI - The Reply = Yes. You can take ITC of IGST paid. Relevant extract of FAQ is given below :- FAQs dated 7.7.17 released by DGFT Q12. Under GST regime, can we get duty free benefit (all duties exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted) if we import using Advance authorization or EPCG? Reply. Under GST regime, both the Advance Authorization and EPCG holders would continue to get the exemption from payment of the Basic Customs Duty, Safeguard Duty, Transitional Product Specific Safeguard Duty and Antidumping Duty. And for items specified in Fourth Schedule to Central Excise Act, 1944 (specified petroleum products, toba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cco etc.) exemption from Additional C Duty leviable under Sections 3(1) , 3(3) and 3(5) of the Customs Tariff Act, 1975 will also be available. However there is one major change. Now an Advance Authorisation holder will have to pay IGST at the time of imports. He can take Input Tax Credit (ITC), and after export, claim refund of any unutilized input tax credit at the end of tax period. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The EPCG holder also will have to pay IGST at the time of imports and take Input Tax Credit (ITC) on the duty paid. He cannot claim refund of any unutilized input tax credit after the exports. Q16. Will IGST be refunded for Capital Goods imported under EPCG scheme? Reply. The EPCG holder also will have to pay IGST at the time of imports and take Input Tax Credit (ITC) on the duty paid. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot claim refund of any unutilized input tax credit after the exports. - Reply By KASTURI SETHI - The Reply = Extract of Board's circular dated 1.7.17. This is a procedure for availing ITC of IGST and Compensation Cess paid. XI. Imports and Input Tax Credit (ITC) : In GST regime, input tax credit of the integrated tax (IGST) and GST Compensation Cess shall be available to the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mporter and later to the recipients in the supply chain, however the credit of basic customs duty (BCD) would not be available. In order to avail ITC of IGST and GST Compensation Cess, an importer has to mandatorily declare GST Registration number (GSTIN) in the Bill of Entry. Provisional IDs issued by GSTN can be declared during the transition period. However, importers are advised to complete th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir registration process for GSTIN as ITC of IGST would be available based on GSTIN declared in the Bill of Entry. Input tax credit shall be availed by a registered person only if all the applicable particulars as prescribed in the Invoice Rules are contained in the said document, and the relevant information, as contained in the said document, is furnished in FORM GSTR-2 by such person. Cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stoms EDI system would be interconnected with GSTN for validation of ITC. Further, Bill of Entry data in non-EDI locations would be digitized and used for validation of input tax credit provided by GSTN. - Reply By ZULFIKAR VOHRA - The Reply = Dear sir, We are not paying IGST and customs duty at time of import (duty debit from EPCG licence). can we get ITC of IGST? please suggest. kindly sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re with us reference. Zulfikar B. Vohra - Reply By KASTURI SETHI - The Reply = Keeping in view of your latest query, ITC of IGST is NOT allowed. Relevant extract are given below:- Para No 5.1(e) of FTP 2015-20 (e) In case Integrated Tax and Compensation Cess are paid in cash on imports under EPCG, incidence of the said Integrated Tax and Compensation Cess would not be taken for comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utation of net duty saved provided Input Tax Credit is not availed. Amendments to Foreign Trade Policy 2015-2020 - Extension of Integrated Goods and Service Tax (IGST) and Compensation Cess exemption under Advance Authorisation, EPCG and EOU scheme upto 31.03.2020. - 57/2015-20 - Foreign Trade Policy - Reply By CSSANJAY MALHOTRA - The Reply = No u can t avail ITC as you have not paid t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he IGST amount in cash during Import clearance. - Reply By YAGAY andSUN - The Reply = In our view also you cannot claim ITC. - ITC IMPORT AGAINST EPCG - Query Started By: - ZULFIKAR VOHRA Dated:- 2-5-2019 Customs - Import - Export - Customs - SEZ - Got 6 Replies - Customs - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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