Goods and Services Tax

IGST on Customer Consgined item for production purpose

Goods and Services Tax – Started By: – MistralSolutionsPrivateLimited – Dated:- 11-4-2018 Last Replied Date:- 12-4-2018 – Dear All, Overseas customer wants to send few specific components (FOC) to our production unit and wants us to integrate the components into the final product. The final product will be exported to him . In this scenario, we will have to pay IGST at the time of import. This is clear. The question is whether the importer can avail the ITC. As per section, serial # 2D of section 16 of GST act, ITC is not eligible if the payment is not made to the supplier. Since we are not going to make the payment to the supplier as the components are supplied free of cost. Please clarify in this scenario, can we avail the ITC or not. re

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er. Since we are not going to make the payment to the supplier as the components are supplied free of cost. Please clarify in this scenario, can we avail the ITC or not. – Reply By KASTURI SETHI – The Reply = You will do assembling which is manfacturing process. How will you arrive at correct transactional value for the purpose of payment of GST ? May be for the purpose of export. Full value of goods including IGST to be paid, if you want ITC. This is my view. I would like oher experts to intervene. – Reply By Susheel Gupta – The Reply = Dear SirIGST on import is paid on reverse charge basis. condition of payment to supplier is not their when tax is to be paid on RCM basis. You can take the ITC.RegardsCA Susheel Gupta9811004443 – Discussion

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