EPCG LISENCE AND IGST REFUND

[SAJU MOHAN]

Sir,

We have imported few machineries Under EPCG lisence without payment of duty and IGST and use along with machineries purchased localy to make textile goods for exports.

Few consignments already exported with IGST payment and we have recieved Refund from on paid IGST. We have used our accumalated GST credit to set of taxes while filing GSTR 3B. Is there is any restrictions to export goods if we availed EPCG lisence ? What happenes when the in this case if the export obligation is full filled?

[Shilpi Jain]

In case of exemption claimed w.r.t. EPCG license, the goods can be exported with payment of tax and refund can be claimed. there is no restriction. Please refer Rule 96(10) of CGST Rule 

[Shilpi Jain]

Rule 96(10)

AI Summary

EPCG exemption: exports allowed with tax payment and IGST refund claim; no restriction on exportability. Where an EPCG exemption is invoked, the exporter may export goods with payment of applicable tax and subsequently claim refund of the IGST paid; there is no statutory prohibition on exporting such goods. Accumulated input tax credit used in GSTR-3B to discharge tax liabilities remains available while export obligations under the EPCG scheme are being fulfilled, and refund procedures under the GST rules apply to IGST paid on such exports.