Can ITC Be Availed on Imports Made Through Courier?

 

Let us take a look at how this old Central Excise controversy has evolved under GST

In the Central Excise regime, a persistent dispute existed around availing CENVAT credit on goods imported through courier. When small consignments were brought in under the Courier Imports & Exports Regulations, the assessment was done through Courier Bills of Entry (CSB forms) instead of the standard Bill of Entry.

The Department objected on the basis that Rule 9 of the CENVAT Credit Rules, 2004 allowed credit only on a “Bill of Entry” – and argued that CSB forms were not the same.

This led to the core question:
Can a Courier Bill of Entry be treated as a valid ‘Bill of Entry’ for input credit purposes?

The matter reached the Larger Bench of the CESTAT in Bharati Airtel Ltd. v. CCE (2016 (340) E.L.T. 642). In this case, larger bench of Tribunal held –
– A Courier Bill of Entry is issued under the Customs Act and is a valid assessment document.
– CENVAT credit cannot be denied merely because goods came via courier.
Form cannot override substance – once duty is paid, credit should follow.
This effectively settled the issue under the old regime

Fast forward to GST
Under GST, ITC eligibility is governed by Section 16 & 17 of the CGST Act and the documentary requirements under Rule 36(1) of the CGST Rules.
Specifically, Rule 36(1)(d) allows ITC on:
“Bill of Entry or any similar document prescribed under the Customs Act, 1962.”
Today, courier imports are cleared electronically (e.g., CBE-V) which:
– Is recognized under the Customs Act,
– Reflects the IGST paid, and
– Auto-populates in GSTR-2B.
Result?
The issue that once triggered prolonged litigation is now largely resolved in the GST regime.
As long as:
–  IGST is paid
–  The importer is identifiable
–  The document is issued under the Customs Act
ITC should not be denied.
Any dispute now would likely arise only due to documentation gaps, not the nature of the document itself.