Bill of Entry GST — IGST, ITC & GSTR-2B Guide

On Indian imports, IGST is paid through the bill of entry at customs and appears in GSTR-2B. Registered importers can claim this as input tax credit provided goods are not in the blocked credit list and are used for taxable business purposes.

Last updated: July 18, 2026

Every taxable import into India attracts Integrated GST (IGST) in addition to Basic Customs Duty. This IGST is paid through the bill of entry at customs and can be claimed as Input Tax Credit (ITC) by registered businesses — but only if specific conditions are met. This guide covers the full lifecycle: IGST calculation, GSTR-2B reconciliation, ITC claim, blocked credits, and what to do when things go wrong.

Why IGST Is Levied on Imports

India's GST framework treats imports as inter-state supply taxable under the IGST Act, 2017. This creates parity between imported goods and domestically supplied goods — both face GST. The IGST is collected at the customs border rather than in the regular GST return cycle, using the bill of entry as the tax document.

How IGST Is Calculated on the Bill of Entry

IGST on imports does not apply simply on the invoice value. The calculation formula is:

Note: Compensation cess applies additionally for goods like tobacco, luxury vehicles, and aerated drinks. Always verify current IGST rates from the GST Council notification for your specific HSN code.

ITC Eligibility — Who Can Claim?

Import IGST paid on the bill of entry is claimable as Input Tax Credit if:

• You are a GST-registered person (GSTIN on the BoE)
• Goods are used for taxable business supply (not exempt, personal, or non-business use)
• Goods are not in the blocked credit list under Section 17(5) of CGST Act
• The BoE data appears in your GSTR-2B (auto-populated from ICEGATE via GSTN)
• ITC is claimed within the time limit under Section 16(4) of CGST Act

Blocked Credits — What You CANNOT Claim

Even if IGST is paid on the BoE, these categories cannot be claimed as ITC under Section 17(5):

GSTR-2B Reconciliation — Step by Step

1. File bill of entry on ICEGATE with your GSTIN correctly entered
2. After OOC, ICEGATE transmits BoE data to GSTN within 48–72 hours
3. Log in to GST portal → Returns → GSTR-2B (for the relevant tax period)
4. Navigate to Table 3 — Import of Goods
5. Verify each BoE entry: GSTIN, BoE number, port, date, assessable value, IGST amount
6. If BoE is missing: confirm GSTIN was on the filed BoE; wait 72 hours; if still missing, raise a ticket with your CHA to check ICEGATE–GSTN linkage
7. Once verified, claim the IGST amount in Table 4(A)(1) of GSTR-3B

Timing Rules for ITC Claim

Under Section 16(4) of the CGST Act, ITC on import IGST must be claimed by the earlier of:

• 30th November of the following financial year (e.g., BoE dated in FY 2024-25 → claim by 30 Nov 2025)
• Date of filing the annual return (GSTR-9) for that FY

Do not defer ITC claims unnecessarily. Claim in the tax period the BoE appears in GSTR-2B.

What If IGST Amount Changes After BoE Amendment?

• Amended BoE increases IGST: Pay differential IGST; updated amount appears in next GSTR-2B cycle; claim the full revised ITC
• Amended BoE decreases IGST: Reverse excess ITC already claimed in GSTR-3B; add interest if reversal is for a prior period

High-Sea Sales and IGST

When goods are sold on high-sea basis (before customs clearance), the bill of entry is filed in the buyer's name. The buyer pays IGST through the BoE and claims ITC. The high-sea sale transaction itself is outside GST — no IGST applies to the sale between original importer and high-sea buyer.

Common IGST/ITC Problems and Fixes

Frequently Asked Questions

Can I claim ITC on the Basic Customs Duty paid on the BoE?

No. BCD and Social Welfare Surcharge are customs duties — they cannot be claimed as ITC under GST law. Only the IGST component of import taxes is eligible for input tax credit.

What if my goods are used for both taxable and exempt supplies?

You must apportion ITC under Rule 42/43 of CGST Rules. Only the portion attributable to taxable supplies is claimable; the rest must be reversed in GSTR-3B.

My GSTR-2B shows a BoE but I can't match it to any shipment. What do I do?

Check the BoE number and port in GSTR-2B against your ICEGATE status. If it is a genuinely unrecognized entry, it may be a data error from another importer with a similar GSTIN. Raise a ticket with the GSTN helpdesk with the BoE details.

For a deeper walkthrough of claiming and reconciling input tax credit specifically, see our ITC on bill of entry guide.