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IGST Exemption for Advance Authorization (AA) / Export Promotion Capital Goods (EPCG) / 100% EOU schemes

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No. CLE-HO-POL/GST/17-18

Oct. 13, 2017

Members of the Council

SUB : IGST Exemption for Advance Authorization (AA) / Export Promotion Capital Goods (EPCG) / 100% EOU schemes

Dear Member

As members are aware, a decision was made in 22nd GST Council meeting held on Oct. 6, 2017 that Immediate relief is being given by extending the Advance Authorization (AA) / Export Promotion Capital Goods (EPCG) / 100% EOU schemes to sourcing inputs etc. from abroad as well as domestic suppliers. Holders of AA / EPCG and EOUs would not have to pay IGST, Cess etc. on imports. Also, domestic supplies to holders of AA / EPCG and EOUs would be treated as deemed exports under Section 147 of CGST/SGST Act and refund of tax paid on such supplies given to the supplier.

The Director General of Foreign Trade (DGFT) has now issued Notification No. 33 dated 13.10.2017 (copy enclosed) extending exemption from IGST, Cess, etc. on import under Advance  Authorization, EPCG and 100% EOU Schemes. Indigenous sourcing against these Scheme will be eligible for deemed export benefit under Para 7.03 of FTP. A copy of the Notification is attached or your reference.

Also enclosed herewith is DGFT Public Notice No. 29 dated 9th October 2017 regarding amendments regarding re-export/repair/replacement of capital goods imported under EPCG Scheme.

Thanks and regards

R. Ramesh Kumar
Executive Director

Notification || Download

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