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 ?

AI Summary

GST Impact on Tax-Free Imports Under Advance Authorisations and EPCG Licences Remains Unclear Until Final Regulations Set. A forum participant inquired about the impact of the Goods and Services Tax (GST) on tax-free imports of raw materials and capital goods under advance authorisations and EPCG licences issued by the Directorate General of Foreign Trade (DGFT). Respondents indicated that while the GST laws were not yet fully formulated, major changes to export promotion schemes were not anticipated. They highlighted that the Customs Act would be separate from GST, and current benefits might continue. However, the exact implications would only be clear once the GST Council finalized the regulations.