The Directorate General of Foreign Trade (DGFT) has removed the pre-import condition to avail exemption from the payment of IGST on imports under Advance Authorization.
This exemption which will be available till March 31, 2019 has also been extended to deemed supplies, said DGFT in a notification.
It said “Para 4.14 of Foreign Trade Policy (FTP) is amended to remove pre-import condition to avail exemption from Integrated Tax and Compensation Cess and exemption from Integrated Tax and Compensation Cess is also extended to deemed supplies.”
Earlier as per para 4.14 of Foreign Trade Policy 2015-20, imports against Advance Authorizations are exempted from the payment of Integrated Tax (IGST). However, this exemption is subject to pre-import condition.
The Cotton Textiles Export Promotion Council (TEXPROCIL) along with other EPCs / Trade bodies had represented to the government to remove the condition of pre-import for IGST exemption against Advance Authorizations.