IMPORT OF SPARE PARTS UNDER EPCG SCHEME.

[KANHAIYA AGRAWAL]

Please guide me on the GST implications on import of spare parts under the EPCG scheme.

Is IGST payable ?

Thanks in advance.

[KANHAIYA AGRAWAL]

Please guide me on the GST implications on import of spare parts under the EPCG scheme.

Is IGST payable at the time of import of goods ? and while exporting goods under EO how to export either with payment or LUT?

Thanks in advance.

[Sadanand Bulbule]

Dear querist

Capital goods imported under EPCG Authorisation for physical exports are exempt from IGST and Compensation Cess, leviable thereon under the sub-section (7) and sub-section (9) respectively of Section 3 of the Customs Tariff Act, 1975.

[Sadanand Bulbule]

Refer Notification No.16/2015-20 dated 01/07/2022 issued by the DGFT, Ministry of Commerce ,GoI as amended to Foreign Trade Policy 2015-2022.

[KASTURI SETHI]

I support the views of Sh. Sadanand  Bulbule,  Sir. 

Also peruse Notification No. 26/23-Customs dated 1.4.23.

[Shilpi Jain]

5.01 of FTP

Capital goods for the purpose of the EPCG scheme shall include:

(i)

(ii)

(iii) Spares, moulds, dies, jigs, fixtures, tools & refractories; and

...............

So spares of CG can be imported under EPCG.

AI Summary

IGST Exemption on Spare Parts Imported Under EPCG Scheme Clarified; Refer to Notifications 16/2015-20 & 26/23-Customs. A user inquired about the GST implications on importing spare parts under the EPCG scheme, particularly if IGST is payable. Respondents clarified that capital goods imported under EPCG Authorization for physical exports are exempt from IGST and Compensation Cess, as per the Customs Tariff Act, 1975. They referenced Notification No. 16/2015-20 and Notification No. 26/23-Customs for further guidance. Additionally, it was noted that spares, moulds, dies, jigs, fixtures, tools, and refractories are included as capital goods under the EPCG scheme, allowing their import.