EPCG Benefits in domestic procurement

[mk Jain]

If we are taking ITC benefits then what is the additional benefit othe than IGST in procurement from domestic supplier under EPCG as deemed export.

Any other faclity of Raw material purchase for export of goods.

MK

[KASTURI SETHI]

Dear Querist,

For this purpose, go through the following paras of FTP 2023 :-

(i) Para no.5.07

(ii) Para no. 6.08(a)

(iii) Para no.7.03

[Shilpi Jain]

EPCG main benefit is exemption from customs duty on export. For domestic procurement it is relief from payment of IGST lessening the burden on the cash flows.

However, export fulfillment should be possible.

AI Summary

EPCG benefits: IGST relief on domestic procurement reduces cash-flow burden, subject to export obligation fulfilment. The EPCG scheme's operative domestic-procurement benefit is relief from IGST on purchases treated as deemed exports, reducing cash-flow burden for the importer-manufacturer; this relief is contingent on meeting the EPCG export obligation and procedural requirements referenced in FTP 2023.