EPCG scheme and export obligation-GST.

[KANHAIYA AGRAWAL]

Please suggest If we import some capital goods under the EPCG scheme (raw material is purchased from the domestic market after paying the gst). Now while making exports (to fulfill export obligation ) , is it compulsory to make export of goods under LUT?

"OR" export with payment of GST option will be available or not?

Thanks

[Shilpi Jain]

Export with payment option also available since rule 96(10) is presently no more in the rule book. This was the rule which restricted export with payment of tax.

Earlier also under 96(10) EPCG was not a category restricted.

So the period of your dispute would also be a relevant factor.

Additional input is that there is a HC decision which has struck off this rule 96(10) retrospectively.

So a good case for you.

[KANHAIYA AGRAWAL]

Thank you shilpi mam,

can you please share notification no. showing rule 96(10) is  no more in the rule book . 

[Shilpi Jain]

Notification 20/24-CT

[KANHAIYA AGRAWAL]

Thank you mam

AI Summary

EPCG export obligation: exporters may fulfil obligations by exporting with GST payment or under LUT after rule removal
EPCG exporters may fulfil export obligations either under a Letter of Undertaking (LUT) or by exporting with payment of GST. The prior restriction in rule 96(10) has been removed by notification, and a High Court decision has struck down that restriction retrospectively, restoring the export-with-payment option; applicability may depend on the relevant transaction period.