TMI BlogDemurrage charges-customs duty-Bill of Entry and IGSTX X X X Extracts X X X X X X X X Extracts X X X X ..... Per Customs valuation rules , Demurrage charges are also part of Value of imported goods and consequently duty on the same would be leviable. Prior to GST, we used to pay the differential duty through TR-6 Challan and was able to take credit of CVD/SAD, as the case may be. , Under GST, should we consider TR-6 Challan as the duty paying documents and If Bill of Entry is reassessed, IGST amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will get reflected in the BOE and upon payment of the said duties, we would be able to take credit of the IGST portion Kindly enlighten the procedure Regards, Jayanta Bandyopadhyay Howrah 7.8.2020 - Reply By KASTURI SETHI - The Reply = In this scenario, credit of IGST is allowed. CVD and SAD both have been replaced by IGST except a few products which are subject to Central Excise du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty. IGST is not neither Customs duty nor levied and collected under Customs Tariff Act/Customs Act. Bill of Entry is primary document for availment of credit under Rule 36(d) of CGST Rules, 2017 and TR.6 Challan / E.Challan (documentary proof payment IGST) is supporting/secondary document of Bill of Entry. The particulars of this proof of payment are mentioned in Bill of Entry itself.Both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are integrally related. It is pertinent to mention here that CGST Rules have been made applicable to IGST Act vide Section 20 of IGST Act . SECTION 20 . Application of provisions of Central Goods and Services Tax Act. - Subject to the provisions of this Act and the rules made thereunder, the provisions of Central Goods and Services Tax Act relating to, (iv) Input Tax Credit -sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all, mutatis mutandis , apply, so far as may be, in relation to integrated tax as they apply in relation to central tax as if they are enacted under this Act : Hence ITC on TR.6 Challan or other documentary proof of payment of IGST is admissible. - Reply By Rajagopalan Ranganathan - The Reply = Sir, I wish to point out that under Section 3 (7) of the Customs Tariff Act 1975 , any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... article which is imported into India shall, in addition, be liable to integrated tax at such rate, not exceeding forty percent. as is leviable under section 5 of the Integrated Goods and Services Tax Act, 2017 on a like article on its supply in India, on the value of the imported article as determined under sub-section (8) or sub-section (8A), as the case may be. Therefore in my view IGST levi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under Customs Tariff Act is also a Customs duty. - Reply By KASTURI SETHI - The Reply = ONLY machinery of Customs Law is used to collect IGST. IGST CANNOT be Customs duty at all. IGST Act is a separate Act. - Reply By YAGAY andSUN - The Reply = If IGST is Customs Duty then ITC would not be available. However, IGST has a separate Act, in GST Laws, therefore cannot be treated as Custom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Duty, ITC will be available. - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = In my view also ITC is available. - Reply By YAGAY andSUN - The Reply = Just to add one more point that Ship Demurrage Charges is not includible in Assessable Value of Imported Goods only demurrage charges related to goods at port are includible. - Reply By KASTURI SETHI - The Reply = Dear Sir, Thanks for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... throwing more light on the issue. Very useful information. - Reply By Ganeshan Kalyani - The Reply = Bill of entry is a document based on which credit can be taken. If the bill of entry is reassessed as stated in your query and the revised IGST would appear in the same, then the IGST as appearing in the revised bill of entry can be taken as credit. - Reply By Ganeshan Kalyani - The Reply = S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir, IGST has to be paid as a part of customs duty, but it is not a customs duty as such. IGST is governed by IGST Act and not by customs Act. So as to determine the rate of IGST one has to see rate notification under IGST Act. - Reply By raghunandhaanan r vi - The Reply = Sir, I do agree with the view of Mr. YAGAY andSUN Sir. If demurrage charges are post importation cost, such cost not i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncludible in the assessable value. Further, IGST on imported goods are being levied under Section 3(7) of Customs Tariff Act 1975 as Additional Duty of Customs . Thus, ITC available - Demurrage charges-customs duty-Bill of Entry and IGST - Query Started By: - JAYANTA BANDYOPADHYAY Dated:- 7-8-2020 Customs - Import - Export - Customs - SEZ - Got 10 Replies - Customs - Discussion Forum - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - 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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