Setting off of CVD and SAD under GST Regime

[Malay pota]

I have a question regarding payment of CVD and SAD as per old Customs duty structure and setting off of the same under GST regime.

Our question is as under:

Suppose I, as MANUFACTURER, have an Advance Authorization (Advance Licence) issued in 2016 .In the advance licence we have made import and effected export also but, unfortunately we could not fulfill complete Export Obligation and for regularization of the advance licence, we need to pay applicable customs duty on the excess import made by us with interest. The applicable duty structure( when the goods imported by us) of the imported item for which we need to pay customs duty with applicable rate of interest is 7.5% Basic Customs duty +12.5 Additional Customs duty (CVD)+2% Higher education cess+1% Secondary Higher Education Cess+4% Special additional duty(SAD).

Before application of GST, 12.5% CVD and 4% SAD were to be allowed to be set off by Claiming CENVAT. Now,my question is if, i regularize the advance licence today by paying the Customs duty as applicable rate as above how can i claim set off of CVD as well as SAD paid by me in the GST regime ?

AI Summary

Manufacturer Seeks Guidance on Claiming Set-Off for CVD and SAD Under GST Using Form TRAN-1 and Section 142(3) CGST Act 2017 A manufacturer with an Advance Authorization from 2016 is seeking advice on claiming set-off for Countervailing Duty (CVD) and Special Additional Duty (SAD) under the GST regime after failing to fulfill export obligations. The manufacturer must pay customs duties on excess imports based on the old duty structure. Respondents suggest using Form TRAN-1 to claim credit if not filed by the deadline of October 31, 2017, and consider a refund under section 142(3) of the CGST Act 2017. The manufacturer questions the applicability of this process for duties paid after July 1, 2017.