UTILIZATION OF MEIS LICENCE FOR PAYMENT OF CUSTOM DUTY

[NITIN DESAI]

SIR,

WE ARE UNIT LOCATED IN DAHEJ SPECIAL ECONOMIC ZONE, GUJARAT. AGAINST EXPORT OF GOODS WE HAVE EARNED MEIS DUTY CREDIT SCRIPT. WE ARE SELLING OUR GOODS IN DOMESTIC TARRIF AREA I.E. LOCAL SALES ALONG WITH EXPORT SALES. WHILE SELLING THE GOODS IN DTA WE ARE REQUIRED TO PAY CUSTOM DUTY AND CGST+SGST.

MY QUERY IS AS TO WHETHER MEIS SCRIPT AVAILABLE WITH US IN OUR NAME CAN BE UTILISED FOR PAYMENT OF CUSTOM DUTY FOR SALES MADE IN DTA. IF SO WHAT IS EXACT PROCEDURE.

[Kishan Barai]

No MEIS Script could not be utilize for sale in DTA. As of now you can use it to import goods & pay Basic Custom Duty from it , as of now imports attracts Basic + IGST duties mainly out of which you can pay Basic from MEIS Script. You have also got option to sell your script to some importer & take money from him , it's fully transferable.

AI Summary

MEIS licence use barred for domestic duty payment; may only offset basic customs duty on imports or be sold.
MEIS certificates cannot be used to discharge customs or GST liabilities arising from Domestic Tariff Area sales; they may only be applied against the Basic Customs Duty component on imports (where imports attract Basic Customs Duty plus IGST). MEIS certificates are transferable and may be sold to an importer who can utilise them to pay Basic Customs Duty on importation.