As per DGFT TN dated 30.06.2017 read with Customs Notification 59/2017, the EOU needs to pay back the customs duty foregone on DTA clearances. The exemption allowed under 52/2003 is withdrawn in Notification 59/2017.
Whether the EOU needs to pay the customs duty on Transaction Value of clearance of scrap or they need to repay the duty foregone proportionately.
Secondly, when the customs duty at the full rate is payable on the DTA clearances, whats the need for fixing the Norms. The Norms has lost its sanctity.
Request the experts views
Regards
S.Ramaswamy
Do Export Oriented Units need to repay customs duties on scrap under GST? Insights on BCD and SION regulations. An individual raised a query about the obligation of Export Oriented Units (EOUs) to repay customs duties on scrap cleared in the Domestic Tariff Area (DTA) following changes in exemptions under GST. The discussion involved four responses. One expert clarified that EOUs must repay the Basic Customs Duty (BCD) exemption on raw materials used for DTA sales. Another questioned the scenario under GST compared to the pre-GST regime. Two responses highlighted that BCD repayment may not be necessary for waste or scrap within Standard Input Output Norms (SION) or approved norms, though duties on inputs must be reversed otherwise. (AI Summary)
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