Is the payment of GST exempted if there is a supply in which raw materials are procured indigenously under Advance Authorisation Scheme for making export products? If yes, what is the method? Through Invalidation or Advance release order (ARO)?
How does the transaction & it's working takes place with respect to the GST and Foreign Trade laws?
GST Not Exempt on Indigenous Procurement Under Advance Authorisation; Refunds Possible Per Notifications 48 and 47/2017-CT R. A discussion on the applicability of GST on indigenous procurement of raw materials under the Advance Authorisation scheme is presented. A query was raised about whether GST is exempted for such supplies and the method of exemption, whether through Invalidation or Advance Release Order. The response clarified that indigenous procurement is not exempt from GST under the Advance Authorisation scheme. However, the supplier can pay GST and claim a refund, and the Advance Authorisation holder can also apply for a refund if required to pay tax. Notifications 48 and 47/2017-CT R were referenced for further details. (AI Summary)
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