Ahmedabad: Gujarat Chamber of Commerce & Industry (GCCI) has written to Union finance minister Nirmala Sitharaman, urging her to resolve a continuing compliance issue involving input tax credit (ITC) on imported goods.
However, GCCI said businesses continued to encounter cases in which import-related BoEs failed to appear in GSTR-2B, despite IGST having been paid to customs, the required documents being available and the credit being reported in GSTR-3B.
The chamber said IGST paid on imports was often not reflected in the auto-generated GSTR-2B statement, even though the corresponding bill of entry (BoE) appeared in GSTR-2A. Since GSTR-2B is treated as a static statement for ITC reconciliation, the mismatch was creating difficulties for businesses, GCCI said. IGST, along with customs duty, is collected by the customs department and is eligible for credit when the prescribed conditions are met, the chamber said. However, the absence of these details in GSTR-2B raises concerns that unresolved mismatches could lead to restrictions on return filing and increase working capital pressure on importers,” said Nayan Sheth, chairman of GCCI’s indirect tax committee.
For import transactions, the BoE is the principal document for claiming ITC. “BoE entry is a valid document for availing ITC on imports.