SME Chatroom: 'ITC available based on IGST payment shown in bill of entry'

In the case of related party transactions, where contemporaneous imports/exports are not available, the matter goes to the Special Valuation Branch for further investigations

Q. We imported certain goods, where the supplier gave us a 40 per cent discount and showed it in the invoice. The Customs rejected that and made us pay duty on the full value, inclusive of the discount amount. We availed ITC of the full IGST as shown in the bill of entry. Does the discount shown in the invoice have any bearing on the ITC that we can take?

Apparently, the Customs, in accordance with explanation (1)(iii)(b) of Rule 12 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007, raised doubts regarding the truth and