DFIA License

[Kaustubh Karandikar]

Duty Credit Scrips issued under MEIS and SEIS scheme, if the same are sold, are exempted from payment of GST. Does this include DFIA Licence also? If yes under which notification / circular?

[KASTURI SETHI]

2018 (19) G.S.T.L. 281 (A.A.R. - GST) = 2018 (11) TMI 885 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRAIN RE : SPACEAGE SYNTEX PVT. LTD.

[KASTURI SETHI]

No specific exemption has been granted by GST Council so far.

[Kaustubh Karandikar]

Respected Kasturi ji

Thanks for your quick guidance. However, this order has been challanged and as per the Order No.MAH/AAAR/SS - RJ/23/2018 - 19 dt.13.03.2019 = 2019 (4) TMI 1542 - APPELLATE AUTHORITY FOR ADVANCE RULING, MAHARASHTRA in case of 'Spaceage Syntex Pvt. Ltd., GST is not payable on it.

What i want to confirm is, subsequent to the above order, is there any notification or circular to clarify that the same is payable.

[KASTURI SETHI]

Sir,

As far as my knowledge is concerned, no notification for granting exemption has been issued. I think the issue has not been taken up in meeting of GST Council so far.

[MUKUND THAKKAR]

MEIS and SEIS is exempted from payment of GST because of it is incentive and DFLA Lic. is not technically incentive but treated as sailing of goods so as per my view GST is applicable. on sales of Lic.

[MUKUND THAKKAR]

please read as selling

AI Summary

GST applicability on DFIA licence: treated as sale of goods and likely subject to GST absent express exemption.
Whether sale of a DFIA Licence is exempt from GST is contested: an administrative ruling sequence (AAR/AAAR) in Spaceage Syntex addressed non-payability, but no GST Council notification or circular grants a general exemption. Practitioners note MEIS/SEIS credits are seen as incentives and exempt, while DFIA Licences may be treated as sales of goods and thus subject to GST absent explicit exemption.