Import purchase entries: customs duty and IGST

Example

Goods worth US$10,000 at ₹84 = assessable value ₹8,40,000.

1. Purchase from the foreign supplier (F9)

Purchase – Import A/c          Dr  8,40,000
    To Foreign Supplier A/c                     8,40,000

2. Customs duty paid on the bill of entry (F5)

Purchase – Import A/c (BCD + SWS)   Dr   92,400
Input IGST A/c                 Dr  1,67,832
    To Bank A/c (or Customs Broker)              2,60,232

BCD and SWS become part of the stock cost. IGST is claimed as input credit once the bill of entry shows in GSTR-2B.

3. Paying the supplier later

The rupee amount paid may differ from ₹8,40,000 because the exchange rate changes. Book the difference as Foreign Exchange Gain or Loss.

Also add to cost

Freight, insurance, clearing agent charges (excluding GST you can claim) and port charges.