Input tax credit of 'IGST' paid on imported goods not admissible: Unbelievable/unintended but true

Sir, I beg to differ with learned author that IGST paid on imported goods is not eligible for credit. Learned author relied on Section 7(5)of IGST Act,2017 earlier to hold a view that DTA supplies from SEZ unit attract IGST twice without considering the specic provision of Section 30 therein that governs payment of tax on DTA supplies. However,learned author in the present article did not consider the same Section 7(2) of IGST Act,2017 that treats imports on par with inter-state supplies. Once it is deemed that supplies are inter-state supplies IGST is payable on imports as per proviso to Section 5 of IGST Act,2017 which is covered in the input tax definition. Provisio to Section 5 made it clear that IGST is collected as provided for in Section 3 of CTA. We all must agree that Law is dynamic. We need not compare with existing provisions. IGST on imported goods is payable as per Section 7(2) ibid. I am of the personal view that the present definition is in tune with IGST provisions read with Section 3 of CTA and the input tax credit on imports is admissible even if there is no mention of additional duty of Customs in the definition. Views expressed are strictly personal.

rrkothapally rrkothapally 12/06/2017