TaxTMI 
TaxTMI 
Clarification regarding reversal of IGST on transfer of duty-free imported goods from EOU to DTA unit
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....larification regarding reversal of IGST on transfer of duty-free imported goods from EOU to DTA unit<br> Query (Issue) Started By: - Dashrath Walkoli Dated:- 11-11-2025 Last Reply Date:- 14-11-2025 Customs - Exim - SEZ<br>Got 3 Replies<br>Customs<br>Dear sir, our company is operating two units - one as an Export Oriented Unit (EOU) functioning under Chapter 6 of the Foreign Trade Policy (FTP), 202....
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....3 read with Notification No. 52/2003-Customs, and another as a Domestic Tariff Area (DTA) unit. The EOU has executed a Bond amounting to Rs. 10 crore for the import of duty-free raw materials required for the manufacture of final products. Subsequently, certain quantities of duty-free imported raw materials were transferred from the EOU to the DTA unit through delivery challans, as they were requ....
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....ired for production purposes at the DTA unit. While transferring the said materials, the applicable Customs duties (Basic Customs Duty and Social Welfare Surcharge) were duly reversed and paid through TR-6 challan. However, the Integrated GST (IGST) component exempted at the time of import was not reversed, as payment through TR-6 challan does not qualify as a valid document for availing Input Ta....
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....x Credit (ITC) in terms of Rule 36 of the CGST Rules, 2017. In view of the above, your kind clarification is requested on the following points: * Whether the IGST component, initially exempted at the time of import under Notification No. 52/2003-Customs, is required to be reversed when such duty-free goods are transferred from the EOU to its DTA unit; and * If such reversal is required, w....
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....hat is the prescribed procedure for effecting the reversal and for subsequently claiming ITC on the same. Reply By Shilpi Jain: The Reply: Are both these units under the same or different GSTIN? Reply By Shilpi Jain: The Reply: Under the said notification, in case where a FG is manufactured with duty free inputs and if the FG is cleared to DTA, then IGST exemption need not be paid back on the ....
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....inputs, rather the payment of IGST on the clearance to DTA would suffice. Though in your case it is the input itself which is cleared. Reply By Dashrath Walkoli: The Reply: both these units under the same GSTIN<br> Discussion Forum - Knowledge Sharing ....