Vide Notification No. RE 53 under Foreign Trade Policy (Ministry of Commerce), restriction of exemption on IGST for Import under Advance Authorization only if it is imported First Is removed.
1) Does this mean that there is exemption even if you Export first and Import later?
2) If that is correct, can we Export first paying IGST and claim refund of IGST paid and later Import under Advance Authorization without payment of IGST? Is this Permissible?
Notification Removes Pre-Import Condition for IGST Exemption Under Advance Authorization; CA Certificate Required for Post-Import Compliance A discussion on a forum addressed the implications of a recent notification removing the pre-import condition for IGST exemption under Advance Authorization. Participants debated whether exports could precede imports while still claiming IGST exemptions and refunds. One participant confirmed that exporting first and claiming an IGST refund is permissible, although concerns were raised about departmental interpretations. The notification also extended exemptions to deemed export supplies and necessitated a CA certificate for post-import compliance. The amendment is prospective, affecting imports post-10.01.2019, with earlier imports requiring IGST reversal. The forum highlighted the complexities of compliance and the need for further clarifications. (AI Summary)
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