Goods and Services Tax

Advance Authorization

GST – Started By: – Kaustubh Karandikar – Dated:- 11-1-2019 Last Replied Date:- 28-1-2019 – Vide Notification No. RE 53 under Foreign Trade Policy (Ministry of Commerce), restriction of exemption on IGST for Import under Advance Authorization only if it is imported First Is removed. 1) Does this mean that there is exemption even if you Export first and Import later? 2) If that is correct, can we Export first paying IGST and claim refund of IGST paid and later Import under Advance Authorization without payment of IGST? Is this Permissible? – Reply By KASTURI SETHI – The Reply = Dear Sir, . Query wise reply is as under :-. 1. Yes. 2.Yes. – Reply By Kaustubh Karandikar – The Reply = Respected Sethi JiThanks for your valuable advice. your answer to my Query No. 2, In my view, the notification does not say that the provision applies only if goods were exported without payment of IGST. Hence what you say seems technically possible. However, not sure what department will do or take a view. T

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ce of the representations of the council/trade, the O/o Directorate General of Foreign Trade, New Delhi has issued Notification No 53/2015-20 dated 10/01/2019 regarding Amendment in Para 4.14 and 4.16 (ii) of the Foreign Trade Policy 2015-20 . As an effect of this notification, Para 4.14 of FTP 2015-20 is amended to remove pre-import condition to avail exemption from Integrated Tax and Compensation Cess and exemption from Integrated Tax and Compensation Cess is also extended to deemed supplies. For further details, please refer DGFT Notification No. 53 Dt. 10.01.2019 as attached herewith. Further, the Department Of Revenue, Ministry Of Finance has also issued its corresponding Notification No.01/2019 Dt. 10.01.2019 Seeking to remove pre-import condition and include specified deemed export supplies for exemption from integrated tax and Compensation cess for materials imported against Advance Authorizations and Advance Authorizations for Annual Requirement. The assesse in such case (Post

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g pre-import conditions and included specified deemed export supplies for exemption from integrated tax and Compensation cess for materials imported against Advance Authorization and Advance Authorizations for Annual Requirement. As per the Notification issued in 2015, Advance Authorization and/or materials imported there under will be with actual user condition. It will not be transferable even after completion of export obligation. However, Authorization holder will have the option to dispose of product manufactured out of duty-free inputs once export obligation is completed. In case where CENVAT credit facility on inputs have been availed for the exported goods, even after completion of export obligation, the goods imported against Advance Authorization shall be utilized only in the manufacture of dutiable goods whether within the same factory or outside (by a supporting manufacturer), for which the authorization holder shall produce a certificate from either the jurisdictional Cent

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the manufacture and supply of taxable goods (other than nil rated or fully exempt supplies) and to submit a certificate from a chartered accountant within six months from the date of clearance of the said materials, that the imported materials have been so used. This is subject to a condition that if the importer pays integrated tax and the goods and services tax compensation cess leviable on the imported materials under sub-section (7) and sub-section (9) respectively of section 3 of the said Customs Tariff Act on the imported materials but for the exemption contained herein, then such imported materials may be cleared without furnishing a bond specified in this condition. – Reply By CAHemanth Kumar B – The Reply = Dear Members,This amendment would be of prospective in nature as it does not specify retrospectively. Therefore from 13.10.2017 to 10.01.2019, pre-import, physical export conditions would apply and the imports made after meeting the export obligations (replenishment) from 1

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