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 for EPCG imports: spare parts classed as capital goods qualify for IGST and cess relief when imported for export obligations.
Spare parts classified as capital goods imported under the EPCG scheme are eligible for exemption from IGST and Compensation Cess when imported for physical export obligations, pursuant to Customs Tariff provisions and implementing notifications, and in accordance with Foreign Trade Policy listings that include spares within capital goods for EPCG.