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

AI Summary

Exploring EPCG Scheme Benefits: Customs Duty Exemption and IGST Relief for Domestic Purchases Under FTP 2023. An individual inquired about the benefits of using the Export Promotion Capital Goods (EPCG) scheme for domestic procurement, specifically regarding additional benefits beyond the Integrated Goods and Services Tax (IGST) when purchasing from domestic suppliers as deemed exports. Two responses were provided. One suggested reviewing specific paragraphs of the Foreign Trade Policy (FTP) 2023 for detailed guidance. The other highlighted the primary benefit of EPCG as the exemption from customs duty on exports and relief from IGST for domestic procurement, which helps reduce cash flow burdens, provided export obligations are met.