GST and Licence/Authorisation/Invalidation issued by DGFT.

[Narendra Soni]

Dear Export

Please suggest:

Whether we would be able to import tax free raw material under advance authorisations issued by Jt.DGFT after implementation of GST Act ?

Similarly, Whether we would be able to import tax free capital goods under EPCG authorisations issued by Jt.DGFT after implementation of GST Act ?

Whether tax free procurment from domestic sources would be made under invalidation of Advance authorisation OR EPCG licences issued by Jt.DGFT after implementation of GST Act ?

[MADAN RAHEJA]

Dear Sir, As yet only Constitutional amendment bill has been passed by Rajya Sabha and main laws/rules/proceedure relating to GST are yet to be formulate. Although, not major changes in respect of export promotion schemes are expected, yet let us wait for GST law to be formulated.

[KASTURI SETHI]

Sh. Narendra Soni Ji,

The present sops/benefits/facilities likely to be continued. Customs Act would be out of GST.

[Ganeshan Kalyani]

Sir, just to add to the reply given by my colleague experts.

Sir, presently under VAT /CST, interstate transaction - if stock transfer then no tax is charged when supported by Form F and - if Sale then 2% or less when supported by Form C. This scheme is going to vanish under GST. Under GST even on Interstate Branch Tranfer of goods IGST shall have to be paid, though credit shall be given.

Recently, I was going through VAT Circular of Chhattisgarh State where a scheme of Entry Tax exemption was given. A condition was given in the bottom line mentioning that 'the benefit shall be continue to be eligible till the date of implementation of GST.

In both the above instances it seems that the benefit under present tax regime may be there in GST. (This is my personal views only).

The main purpose of GST is seemless credit by levy tax on supply of goods/service. Thus such all things are mystery as of today.

Thanks.

 

[MUKUND THAKKAR]

Narendra Soni Ji,

Advance Authorisation /EPCG authorisation is issued by MOC and GST will be handle by MOF . so donot worry about any export related benifit which you have taken at present.

[Ganeshan Kalyani]

Sir, I was referring to CVD and SAD in import/export. Thanks.

[YAGAY andSUN]

Dear Mr. Soni,

Please refer following press release by digging out from FIEO's Website.

Press Releases
CONCERNS OF THE EXPORTS SECTOR IN THE GST REGIME: FIEO
FIEO/PUB/PR /29/16
August 30, 2016
CONCERNS OF THE EXPORTS SECTOR IN THE GST REGIME - PUT FORWARD BY FIEO IN THE MEETING OF EMPOWERED COMMITTEE OF STATE FINANCE MINISTERS ON GST

[Ganeshan Kalyani]

Sir, thanks for sharing the update. Lot of discussions are going on and are to take place. But only after GST Council is set up a conclusion is expected to come. Thanks.

[Govind Gupta]

is there any clarity on this query now

AI Summary

GST impact on duty free imports: uncertainty whether Advance Authorisation and EPCG benefits continue after GST implementation. Whether Advance Authorisation and EPCG licences will continue to permit duty free import of raw materials and capital goods after GST enactment, and whether domestic procurement under invalidated licences will remain tax exempt, is uncertain pending GST legislation and rules. Contributors expect export promotion benefits largely to continue, note customs administration remains distinct from GST, and warn that GST's seamless credit model and IGST on interstate transfers may change practical tax treatment; stakeholders have raised concerns but no definitive legal guidance is yet provided.