Introduction
Importing goods into India involves more than paying customs duties and arranging transportation. Businesses must also verify the applicable Integrated Goods and Services Tax (IGST), maintain customs documentation, record import transactions correctly and check whether the tax paid is eligible for input tax credit.
A common accounting problem arises when the Bill of Entry, customs payment records, purchase register and GST Portal information do not match. Such differences can delay credit claims, create inconsistencies in GST returns and complicate month-end reconciliation.
A systematic import compliance process helps businesses verify the documents received from customs, identify errors in the importer's GSTIN or tax values, and maintain a clear record of the goods purchased from overseas suppliers.
What Does Import Under GST Mean?
Under the GST framework, bringing goods into India from a place outside India is treated as an import. Imported goods are generally subject to IGST under the applicable customs and GST provisions, in addition to the customs duties that may apply to the transaction.
The amount payable depends on the classification of the goods, their assessable value, the applicable duty rates, any exemptions and the importer's eligibility for benefits under relevant schemes.
For a registered business importing goods for taxable business activities, the IGST paid at import may qualify for input tax credit, subject to the applicable provisions and restrictions. However, not every amount paid during customs clearance qualifies as GST input tax credit.
Businesses should distinguish between IGST paid on imports, Basic Customs Duty (BCD), other applicable customs duties, and GST charged separately on domestic services such as freight handling or customs brokerage.
What Is a Bill of Entry?
A Bill of Entry is a customs declaration submitted for imported goods. It contains details used by customs authorities to assess the goods and applicable duties, and it serves as an important document for import accounting and eligible IGST credit.
Under Section 46 of the Customs Act, 1962, an importer generally files a Bill of Entry electronically through the customs system, subject to the applicable procedures and exceptions.
The Bill of Entry typically includes the importer's details, goods description, classification, assessable value, country of origin, duty calculation and relevant tax information.
For GST purposes, the Bill of Entry is particularly important because it provides the documentary basis for claiming eligible input tax credit of IGST paid on imported goods.
Why the Bill of Entry Matters for GST Compliance ?
A Bill of Entry connects the customs transaction with the importer's accounting records and GST credit claim. If the document contains incorrect information, the business may experience difficulties matching the import with the GST Portal or substantiating the credit claimed.
The following details deserve particular attention:
| Particular | What to verify |
|---|---|
| Importer name | Confirm that the details correspond to the importing business |
| GSTIN | Check that the correct GST registration is declared |
| Bill of Entry number | Record the reference number accurately |
| Bill of Entry date | Match the date with customs documentation |
| Goods description | Ensure that the imported goods match the purchase and shipping records |
| Assessable value | Reconcile the customs-assessed value with the import documentation |
| IGST amount | Verify the tax assessed and paid |
| Customs duty | Record BCD and other applicable duties separately |
| Port and shipment details | Match the relevant import and transport records |
| Amendments | Retain revised documents and reconcile the differences |
A business should not rely solely on the overseas supplier's commercial invoice when determining the IGST credit available on imported goods. The customs assessment and Bill of Entry must also be considered.
1. Understand the GST and Customs Taxes Payable on Imports
Import costs can include several components, and each should be recorded under the correct accounting head.
| Tax or charge | General treatment |
|---|---|
| Basic Customs Duty | Customs duty; not GST input tax credit |
| IGST on imported goods | May qualify for eligible input tax credit, subject to GST provisions |
| Compensation cess, where applicable | Treatment depends on the applicable law and permitted credit use |
| Customs brokerage charges | Review the service invoice and applicable GST treatment |
| Freight and handling charges | Record according to the contractual arrangement and applicable tax treatment |
| Port and clearance expenses | Classify using the relevant supporting documents |
For many imports, IGST is calculated on a value that includes the assessable value and specified customs duties or amounts, as prescribed under the Customs Tariff Act and related provisions.
The exact computation depends on the goods, applicable notifications and the relevant customs assessment. Businesses should verify the duty calculation against the Bill of Entry instead of applying a single formula to every import.
2. Check the Importer's GSTIN Before Customs Filing
One of the most important checks takes place before or during the preparation of the Bill of Entry.
The GSTIN declared for the importer should correspond to the GST registration under which the imported goods are intended to be accounted for and eligible credit is to be claimed. An incorrect GSTIN can prevent the import record from appearing correctly in the GST Portal's import records.
For businesses with registrations in multiple States, the finance and logistics teams should confirm which registered entity is importing the goods and which GSTIN should be declared.
Before customs filing, verify the following:
-
The legal entity importing the goods is correctly identified.
-
The applicable GSTIN is communicated to the customs broker.
-
The purchase order and overseas supplier invoice match the shipment.
-
The importer details are consistent across the commercial and customs documents.
-
Any special import authorisation or exemption is properly documented.
-
The accounting team is informed about the shipment and expected customs clearance.
If an error is identified after filing, the business should follow the applicable customs amendment process and retain the corrected documentation.
3. Documents to Maintain for Imported Goods
Import documentation should be maintained in a way that allows the business to trace each transaction from the overseas purchase order to the final accounting entry.
The required documents can vary depending on the type of goods, shipping method, customs treatment, applicable licences and payment arrangements.
| Document | Why it matters |
|---|---|
| Purchase order or import contract | Establishes the commercial terms and goods ordered |
| Overseas supplier invoice | Supports the purchase value and supplier details |
| Packing list | Helps verify the quantity and description of goods |
| Bill of Lading or Airway Bill | Provides shipment and transportation details |
| Bill of Entry | Supports customs assessment and eligible import IGST credit |
| Customs duty payment evidence | Confirms the applicable customs payment |
| Customs assessment documents | Supports the duty and tax calculation |
| Insurance and freight records | Help explain import costs and valuation where relevant |
| Certificate of Origin, where applicable | May support a claim for preferential customs treatment |
| Import licence or authorisation, where required | Demonstrates compliance with applicable import restrictions |
| Goods receipt note | Confirms receipt of goods at the business location |
| Supplier payment records | Supports settlement of the overseas purchase |
| Relevant correspondence and amendments | Explains changes to the shipment or customs declaration |
Not every document is required for every import. The business should maintain the records relevant to the transaction and applicable customs requirements.
4. How to Claim Eligible IGST Credit on Imported Goods ?
A registered business may claim eligible input tax credit of IGST paid on imported goods when the statutory conditions are satisfied. The Bill of Entry or another prescribed customs document serves as the relevant documentary basis for the claim under the GST rules.
The accounting team should verify the following before including the amount in its ITC working:
-
The goods were imported by the business claiming the credit.
-
The Bill of Entry contains the correct importer details and GSTIN.
-
The IGST amount has been assessed and paid as required.
-
The goods are used or intended to be used for eligible business purposes.
-
The credit is not blocked or restricted under the applicable provisions.
-
The claim is supported by the customs documentation and GST Portal records.
-
The credit is recorded in the correct period and tax head.
Credit should not be claimed merely because an import expense appears in the accounts. The business must verify eligibility, supporting documents and compliance with the applicable GST provisions.
Also, Basic Customs Duty should not be included in the GST input tax credit claim simply because it was paid on the same Bill of Entry.
5. Reconcile the Bill of Entry With GSTR-2B
Importers should regularly review the import records available on the GST Portal and compare them with their own customs documentation.
The portal provides import-related information based on data received through the customs system. The import of goods section in GSTR-2B contains relevant Bill of Entry information, including eligible records for imports from overseas and certain supplies from Special Economic Zones.
If a Bill of Entry is missing, contains incorrect information or shows a different tax amount, the accounting team should investigate the cause before finalising the credit claim.
A practical reconciliation should include:
| Reconciliation point | Action required |
|---|---|
| Bill of Entry in customs records | Confirm that the document is finalised and available |
| GSTIN on Bill of Entry | Verify the registration details |
| Import IGST amount | Compare the customs-assessed amount with the GST Portal |
| Bill of Entry date and number | Check for incorrect or duplicate references |
| Amendments | Ensure that revised values or GSTIN details are considered |
| GSTR-2B import records | Match the relevant import entries with the internal register |
| ITC claimed in GSTR-3B | Compare the amount claimed with the eligible credit working |
| Unmatched transactions | Record the reason and follow up for correction |
The GST Portal also provides an import-related comparison report that can help identify differences between ITC claimed in GSTR-3B and import credit reflected in GSTR-2B.
6. Understand the Import of Goods Section in IMS
The GST Portal introduced an Import of Goods section in the Invoice Management System (IMS) from the October 2025 tax period onwards. It allows taxpayers to view relevant Bill of Entry records for imports, including imports from Special Economic Zones, and take the permitted action on individual records.
The relevant categories include import records from overseas, amendments to those records, imports from SEZ units or developers, and amendments to SEZ import records.
Businesses should review the import records available in IMS and follow the current portal instructions. According to the official advisory, a Bill of Entry for which no action is taken is treated as deemed accepted. The portal uses the applicable action and import data to generate the draft GSTR-2B, while permitted changes may be made up to the relevant GSTR-3B filing stage.
This makes it important for importers to check the import records in IMS rather than relying only on older reconciliation routines.
Practical recommendation: Add an IMS import-record review to the monthly GST checklist. Investigate missing, duplicated or incorrect entries and confirm that the final eligible credit is reflected accurately in the GSTR-3B working.
7. Record Imported Goods Correctly in the Books of Accounts
The accounting treatment should distinguish between the cost of the imported goods, eligible tax credit, non-creditable duties and other expenses related to bringing the goods into the business.
The exact treatment depends on the nature of the goods, the applicable accounting standards, the business's inventory policy and whether the amounts are directly attributable to acquiring the goods.
For example, an importer may need separate ledger accounts for inventory or fixed assets, Basic Customs Duty, eligible import IGST, customs brokerage, freight, insurance and other clearance expenses.
The following illustrative structure can help organise the records:
| Accounting component | Suggested treatment |
|---|---|
| Purchase or inventory value | Record according to the applicable inventory accounting policy |
| Basic Customs Duty | Account for as part of the relevant cost where required under the applicable accounting treatment |
| Eligible import IGST | Record as eligible input tax credit |
| Non-creditable tax or duty | Account for under the applicable cost or expense treatment |
| Customs brokerage and handling | Record against the relevant service invoice or expense account |
| Freight and insurance | Account for according to the contract and applicable accounting policy |
| Supplier advance or payment | Reconcile with the overseas supplier account |
| Customs payment | Match with the Bill of Entry and payment records |
The accountant should also reconcile the goods received with the purchase register and inventory records. Any quantity differences, damaged goods, short shipments or valuation amendments should be documented and addressed through the appropriate accounting process.
8. Imported Services: A Separate GST Review
Imports of services require a separate review because they do not follow the same Bill of Entry process used for imported goods.
Depending on the nature of the service, the supplier's location, the place of supply and the applicable provisions, GST may be payable under the reverse charge mechanism. The business should review the contractual arrangement, invoice, payment records and applicable tax treatment before recording the transaction.
If GST is payable under reverse charge, the business should determine the appropriate reporting and payment requirements. Eligible ITC, where permitted, should be assessed separately after satisfying the relevant conditions.
Examples of service imports may include overseas consulting, software subscriptions, professional services, technical support and other cross-border business services. The GST treatment should be determined from the actual transaction rather than the supplier's overseas location alone.
9. Common Import GST Errors to Avoid
A common error is claiming import IGST credit without checking whether the Bill of Entry contains the correct GSTIN. Even when the customs payment has been made, an incorrect registration detail can create problems in portal reconciliation.
Another frequent issue is treating every customs payment as eligible ITC. Basic Customs Duty and other non-GST duties should not be combined with the eligible IGST credit amount.
Businesses may also overlook amended Bills of Entry, duplicate import entries, missing customs records or differences between the tax paid and the credit claimed in GSTR-3B.
Errors can also occur when the logistics team retains the customs documents but does not share them with the accounting team. A standard document handover process helps ensure that import transactions are recorded and reconciled on time.
10. Monthly Import GST Compliance Checklist
A monthly review helps importers identify missing records before filing GST returns and finalising accounts.
| Task | What to verify |
|---|---|
| Collect import documents | Supplier invoices, shipping documents and Bills of Entry |
| Verify GSTIN | Confirm that the correct registration is declared |
| Check customs payments | Match tax and duty amounts with the final customs records |
| Review import records in IMS | Check relevant Bill of Entry entries and permitted actions |
| Reconcile GSTR-2B | Compare import IGST records with the internal register |
| Verify ITC eligibility | Check statutory conditions and applicable restrictions |
| Review GSTR-3B working | Match eligible import credit with the amount claimed |
| Record import costs | Separate inventory or asset cost, duties, credit and expenses |
| Track discrepancies | Record missing documents, amendments and unresolved differences |
| Archive supporting evidence | Preserve final documents, payment proof and reconciliation workings |
The checklist should be adapted to the business's import volume, the number of GST registrations and the complexity of its customs transactions.
Frequently Asked Questions
What is a Bill of Entry under GST?
A Bill of Entry is a customs declaration filed for imported goods. It contains relevant import and tax details and serves as an important document for claiming eligible IGST input tax credit on imports.
Can a business claim ITC on IGST paid at customs?
A registered business may claim eligible import IGST credit if the relevant statutory conditions are satisfied, the tax has been paid as required and the credit is supported by the prescribed customs documentation.
Is Basic Customs Duty eligible for GST input tax credit?
No. Basic Customs Duty is a customs duty, not GST input tax credit. It should be accounted for separately according to the applicable accounting treatment.
What should a business do if its Bill of Entry is missing from GSTR-2B?
Compare the customs document with the GST Portal records, particularly the importer GSTIN, Bill of Entry number, date, tax amount and any amendments. Investigate the discrepancy and follow the relevant customs or GST Portal correction process before finalising the credit claim.
Does the Bill of Entry appear in the GST Portal automatically?
Relevant import data is made available through the customs and GST systems. However, importers should not assume that every record will appear correctly without review. Regular reconciliation is important to identify missing or incorrect entries.
What is the Import of Goods section in IMS?
The Import of Goods section in IMS allows taxpayers to view and take permitted actions on relevant Bill of Entry records, including specified import amendments and imports from SEZ units or developers. Importers should follow the current GST Portal instructions when reviewing these records.
Are imports of services treated in the same way as imports of goods?
No. Imports of services require a separate GST assessment. Depending on the transaction, GST may be payable under the reverse charge mechanism, and the business must evaluate any related ITC claim under the applicable provisions.
How FilingSuvidha Can Help With Import GST Compliance ?
Import transactions often involve multiple teams, including purchasing, logistics, customs brokers, finance and accounting. When documents are not shared consistently, the business may face difficulties reconciling customs payments, import IGST and GST returns.
FilingSuvidha can help businesses organise GST compliance records, review import-related documentation and establish a consistent reconciliation process. A structured workflow helps identify missing Bills of Entry, incorrect GSTIN details, mismatched tax amounts and differences between import records and GST return workings.
The appropriate support depends on the nature of the imports, the business's GST registrations, the transaction volume and the applicable compliance requirements.
For assistance with GST compliance and accounting-related requirements, contact FilingSuvidha.
Website: https://filingsuvidha.com/
Phone: +91 96259 95981
Email: lsaadvisory3@gmail.com
Instagram: https://www.instagram.com/filingsuvidha/
Our focus is on transparent pricing and on-time delivery.
Disclaimer
This article is intended for general educational and informational purposes and should not be treated as legal, customs, tax or professional advice. The treatment of imports, eligibility for input tax credit, customs duties and GST reporting requirements depends on the nature of the goods or services, applicable notifications, statutory provisions and the facts of each transaction. Businesses should verify the current GST Portal and customs requirements and consult a qualified professional where necessary.