IGST Exemption on import of Gold Compound - UAE CEPA ASEAN agreement

[Bhavesh Suthar]

We are a bullion trader. We are planning to import Gold compound (HSN 28433000) from Dubai/ Indonesia. Under the UAECEPA/ ASEAN agreements, .

1) What are the compliances/ statutory requirements to carry out these imports.

2) After importing, we plan to extract the gold from the compound and sell it in the domestic market. Are there any consequences of doing so.

3) What are the conditions to be fulfilled to claim IGST Refund (Inverted duty structure) and roadblocks if any.

AI Summary

Inverted duty structure: IGST refund eligibility on refined gold after importing gold compound under preferential trade claims.
Import under India UAE CEPA/AIFTA requires TRQ allocation (where applicable), valid Proof of Origin, CAROTAR due diligence, pre import IGCR 1 filing and an end use undertaking when claiming concessional duty; deviation from declared end use triggers duty recovery. Refining the imported gold compound is treated as manufacture, with refined gold taxable on outward supply and subject to assay and BIS compliance. Refund under the inverted duty structure is available only where input tax exceeds output tax, via Form RFD 01 with matched GST returns and within statutory timelines, whereas blocked credits, capital goods and procedural non compliances bar refunds.