EPCG query

[prakash bose]

Dear sir

I wanted to understand, if I purchase shuttleless looms under EPCG from a domestic manufacturer/supplier, do I get refund for CST and entry tax apart from excise duty refund.

Also under EPCG do I get refund for import duty applicable on parts used for manufacturing shuttleless looms by my domestic supplier, under deemed exports.

It would be great if you can help

thanks

Prakash

AI Summary

EPCG Scheme: No CST or Entry Tax Refunds for Domestic Shuttleless Looms; TED Refunds Available. Check State Tax Laws. An individual inquired about the benefits under the Export Promotion Capital Goods (EPCG) scheme when purchasing shuttleless looms from a domestic supplier. Specifically, they asked about refunds for Central Sales Tax (CST), entry tax, and import duties on parts. Respondents clarified that EPCG allows duty-free import of capital goods with an export obligation. Domestic purchases under EPCG are treated as deemed exports, allowing for Terminal Excise Duty (TED) refunds. However, CST and entry tax refunds are not available, though entry tax may be set off against VAT in certain states. The discussion emphasized checking state-specific tax laws.