Intro:
The question of IGST credit on TR-6 challan has gained attention among taxpayers and consultants dealing with customs clearances and imports. Many are unsure whether IGST paid via a TR-6 challan—used at ports or by enforcement agencies—qualifies for input tax credit (ITC) under GST.
What is TR-6 Challan?
- Customs duties (including IGST on imports)
- Fines or penalties
- Duties collected by DRI, Customs (Prev.), SEZ units, etc.
Can IGST Paid via TR-6 Be Claimed as ITC?
As per CBIC Circular No. 183/15/2022-GST dated 27 December 2022, NO, taxpayers cannot avail ITC of IGST paid via TR-6 challan.
Hence, the data doesn’t auto-populate in GSTR-2B, which is essential for ITC under Rule 36(4) of CGST Rules.
Legal References Supporting Denial of ITC
| Provision/Circular | Key Takeaway |
|---|---|
| Sec 16(2)(a) – CGST Act | ITC allowed only if tax is paid to Govt by a registered supplier |
| Rule 36(4) – CGST Rules | ITC limited to invoices auto-populated in GSTR-2B |
| Circular 183/15/2022-GST | Explicitly disallows ITC on TR-6 challans not linked to Bill of Entry |
What About IGST Paid on Imports?
Yes, ITC is allowed if:
- The details auto-populate in GSTR-2B
- The importer holds a valid GSTIN and uses the goods for business
Expert View: Avoid ITC Mismatch Traps
“Taxpayers should ensure IGST on imports is always routed through a Bill of Entry and appears in GSTR-2B. Manual TR-6 payments are outside GSTN’s ITC eligibility scope.”
— Indirect Tax Consultant, Efiletax Team
Step-by-Step: Claiming ITC on Import IGST (Proper Way)
- File a valid Bill of Entry through ICEGATE
- Pay Customs Duty + IGST electronically
- Wait for auto-population in GSTR-2B
- Claim ITC in GSTR-3B under Table 4(A)(1)
Practical Scenarios: TR-6 vs Bill of Entry
| Scenario | TR-6 Challan | Bill of Entry |
|---|---|---|
| Seized goods released | Used | Not applicable |
| Regular import | Not recommended | Mandatory |
| DRI-assessed value | TR-6 used | No GSTR-2B link |
| ITC Available? | ❌ Not allowed | ✅ Allowed |
FAQ: IGST on TR-6 Challan
Q1: Can I manually add IGST paid via TR-6 in GSTR-3B?
A: No. Since it’s not in GSTR-2B, Rule 36(4) blocks the claim.
Q2: What if it’s a genuine business import?
A: Use Bill of Entry, not TR-6, to ensure ITC eligibility.
Q3: Any exception for small importers or SEZs?
A: No explicit exception under current rules.
Final Take: Avoid TR-6 for IGST ITC
If you’re importing goods or clearing from customs, always insist on:
✅ Electronic Bill of Entry
✅ GSTIN declaration
✅ ICEGATE filing for ITC tracking