Import Under Concessional rate of duty & same export under advance license sheme

[Keyur Goswami]

Respected sir,

We are importing raw material under concessional rate of duty and also under advance license for manufacturing of our cable product

Here my query is in case of export can we avail benefits of advance license even if raw material consumed is of goods imported under concessional rate of duty.

regards - Keyur Goswami

[KASTURI SETHI]

In my view, both schemes must not be inter-mingled. Do not commit record based mistake. You will find problem in convincing the department, if hybrid procedure is adopted.

[Keyur Goswami]

thank's for the information , also i want to know is there any prior notification regarding this subject which specify such in details.

[KASTURI SETHI]

No. My reply is based on common knowledge No two schemes should be overlapped or intermingled. Otherwise it can create problem during audit. There is no possibility for any Authority on such issue.

[Keyur Goswami]

Noted & thank your very much sir

My one more query is we are importing the RM under advance license wherein no paying the GST as exempted under license . Now question is that … Can we supply the FG ( Domestic sales ) under exemption certificate / Undertaking / to solar Power projects or any Government Body with 5% GST instead of full rate 18%) if said FG produced from that particular RM.

[KASTURI SETHI]

Not allowed.

[Keyur Goswami]

Noted & thank's

[YAGAY andSUN]

In addition to above replies generally concessional rate of duty on goods associated along with certain conations which needs to be fulfilled mutis mutandi where as goods imported against or obtained indigenously against Advance Authorization are subject to export of goods manufactured by using such goods. Both the schemes cannot be used simultaneously. Further if on imported goods if procured against AA and no IGST is paid then goods cannot be supplied/exported with the payment of IGST, Even if paid then no refund will be allowed.

AI Summary

Non intermingling of concessional imports and advance authorization: cannot use one scheme to claim the other's export or GST benefits. Import concessions and Advance Authorization benefits are mutually exclusive: inputs imported under concessional duty and inputs obtained under Advance Authorization carry separate conditionalities and must not be intermingled. Inputs under AA exempted from IGST do not permit domestic supply of finished goods at a reduced GST rate on that basis; absent IGST payment on AA inputs, supplying or exporting finished goods with IGST payment to seek refund is not permissible.