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 and SUN]

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

EOU DTA sales: subject to GST; Advance Authorization holders may procure inputs from EOU/SEZ without an Advance Release Order.
EOU supplies into the Domestic Tariff Area must be made by charging GST. Advance Authorisation holders may procure inputs from EOU/EHTP/BTP/STP/SEZ units instead of importing directly without obtaining an Advance Release Order or an invalidation letter; one reply stated Advance Authorisation is not utilised for an EOU's DTA sale.