DTA Sale against Advance Authorization

[Hikal Ltd]

Can EOU supply goods (DTA Sales) against Advance Authorization? If so is it required to reverse BCD under GST?

[Ramesh Kothari]

Yes EOU can sell there product in DTA by charging the GST

AA can not utilised

[YAGAY andSUN]

Para 4.20 (v) of the FTP (MTR) :- Advance Authorisation holder under DTA can procure inputs from EOU / EHTP / BTP / STP / SEZ units without obtaining Advance Release Order or Invalidation Letter.

[Raghunandhaanan rvi]

In terms of Para 4.20 of FTP 15-2020, holder of an Advance Authorization can procure inputs from EOU inlieu of direct import. against advance release order [ARO] or invalidation letter for direct import.

Advance Authorization holder can also procure inputs from SEZ unit withut obtaining Advance Release Order or invalidation letter.

AI Summary

EOUs Can Supply Goods for DTA Sales with GST; Advance Authorization Holders Can Procure Inputs Without Extra Documentation An entity inquired whether an Export Oriented Unit (EOU) can supply goods for Domestic Tariff Area (DTA) sales against Advance Authorization and if reversing Basic Customs Duty (BCD) under GST is necessary. Responses clarified that EOUs can sell products in DTA with GST charges. According to Foreign Trade Policy (FTP) provisions, Advance Authorization holders can procure inputs from EOUs and other units like SEZs without needing an Advance Release Order or Invalidation Letter. This allows for input procurement in lieu of direct import, facilitating smoother transactions under specified conditions.