Important FTP provisions in the context of the implementation of the GST regime applicable w.e.f. 01.07.2017

GST on imports under FTP: IGST payable with input tax credit; Advance Authorisation exemptions limited to basic customs duty.

References to Central Excise Authority in the FTP are to be read as Jurisdictional Customs Authority; Duty Credit Scrips cannot be used for payment of IGST or GST compensation cess on imports or for CGST/SGST/IGST and GST compensation cess on domestic procurement. Advance Authorisation exemptions will not cover IGST or GST compensation cess; importers must pay IGST and may claim ITC. ARO facility is restricted to items in Schedule 4. EOUs must pay applicable GST on domestic procurements and on DTA clearances may need to repay customs exemptions; deemed export drawback and TED refunds are limited principally to basic customs duty except where Schedule 4 central excise exemptions apply.