MEIS LICENSE -EOU UNIT

[KULDEEP SINGH]

Dear Team ,

We are EOU unit and now we got MEIS License ,could you please guide me the uses of these license? Can we use these license towards payment of IGST on import so that our funds do not block.

We are also selling scrap. We are generating domestic invoice for the same. We mention custom duty and cess payable on invoice which has to be paid monthly. Whether we can debit the custom duty and cess payable generated on scrap sales against these license. Please confirm.

[Himansu Sekhar]

Meis license can be used for customs duty. It cannot used for igst. This view may be examined.

[MUKUND THAKKAR]

Use of MEIS is restricted any GST payments as well as custom duty payment expect in case of Import you can utilized for BCD payment only.

[Himansu Sekhar]

Yes, I also agree.

[Kishan Barai]

New FTP with amendments are yet to come. Waiting for a change in it...

AI Summary

MEIS licence use limited to customs duty on imports; not available for IGST or domestic GST liabilities.
MEIS licences for an EOU unit may be applied to customs duty on imports, specifically basic customs duty, but are not available for payment of IGST or other GST liabilities and therefore cannot be used to adjust monthly cess or customs duty arising from domestic scrap sales except as permitted under current FTP for import BCD.