SUPPLY TO UNIT HAVING EPCG CERTIFICATE

[SURYAKANT MITHBAVKAR]

Supply to unit having EPCG Certificate is exempted or not.

If yes, under which notification?

[KASTURI SETHI]

Extract of Notification No.33/2015-2020 Foreign Trade Policy Dated 13.10.17

Para No.5.07 Indigenous sourcing of capital goods and benefits to domestic supplier

A person holding an EPCG Authorisation may source capital goods from a domestic manufacturer. The domestic supplier to EPCG Authorisation holder has to collect and pay GST and then claim such GST paid as deemed export benefit. Such domestic manufacturer shall be eligible for deemed export benefit under paragraph 7.03 of FTP. Such domestic sourcing shall also be permitted from EOU’s and these supplies shall be counted for purpose of fulfilment of positive NFE by said EOU as provided in Para 6.09(a) of FTP.

[SURYAKANT MITHBAVKAR]

Can we cleared Goods to EPCG certificate holder under LUT.

So there is no question of Refund claim.

AI Summary

Supply to EPCG units: domestic suppliers must collect GST which may qualify as deemed export benefit under FTP. Supply to an EPCG Authorisation holder requires the domestic supplier to collect and pay GST, which can subsequently qualify as a deemed export benefit under the Foreign Trade Policy; domestic sourcing from EOUs is permitted and counts toward the EOU's positive NFE obligations.