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Question ID : 38083

ITC reversal in case of Import

I have imported material and paid applicable IGST at custom clearance now, I have issued debit note for less material received or for material received was defective to foreign party. Now whether i have to reverse proportionate IGST ITC or not ?

Posted by parth on Apr 06, 2019

Filed Under GST

Answer ID : 76469

To the extent the debit note is issued make the reversal of ITC

Posted by GANESH KESHAO NIKAM on Apr 06, 2019
Answer ID : 76472

No. It is not required to reverse IGST as the goods has not been destroyed. It is already in existence with you but it is defective. So it may have alternative use or may be sold as scrap. Debit note is a form of settlement of payment but it is not the quantitative settlement as you have not going the send back the goods to the exporter.

Posted by CA. JHA SHANKAR KUMAR on Apr 07, 2019
Answer ID : 76477

Valid Debit and credit note can only be issued by the supplier of the goods and services . For less received material take IGST can be reversed proportionately.

Posted by CA. BISHT RAKESH on Apr 08, 2019