CST RE-IMBURSEMENT CLAIM-PARA 6.11 (C) FTP-2015-20

[Asked by Guest]

we have received an email instructions from SEEPZ.

as per their letter the CST Re-imbursement claim is not entitled on the material which is not manufactured in India.

following are the email instructions:-

Attention is invited to Para 6.11(c) of Foreign Trade Policy, 2015-20, which provides for entitlement for reimbursement of CST in respect of supplies from the DTA. One of the condition for availing the CST reimbursement entitlement is that the said goods should be manufactured in India.

In view of the aforesaid Policy provisions, it has been decided to call for the Declaration on the letterhead of the applicant duly signed by the authorized signatory of the applicant EOU in the format prescribed (separate declaration for each claim application submitted to this office) as follows :

We, M/s. ___________________, hereby declare that the goods procured from the DTA, in respect of which the CST reimbursement is being claimed are manufactured in India.

The applications for grant of reimbursement of CST submitted by the EOUs shall be processed further, only after receipt of the Declaration in the above-mentioned format.

Kindly suggest expert view in this regards.

[YAGAY and SUN]

We endorse the view of SEEPZ as CST is applicable on the sale which happens interstate between the two parties for amount paid or payable. It is for the purpose of nullifying the tax burden of 2% against form C and also for boosting the very concept of MII (Make in India).

AI Summary

CST reimbursement entitlement requires DTA-sourced goods to be manufactured in India and a signed declaration before processing.
CST reimbursement under Para 6.11(c) of the Foreign Trade Policy is conditional on the goods procured from the DTA being manufactured in India. SEEPZ requires a separate signed declaration on applicant letterhead for each claim confirming manufacture in India; reimbursement applications will be processed only after receipt of that declaration.