Question4:
My question is whether we can clear finished goods against Advance License to DTA under exemption of custom duties. This exemption is not seen anywhere so I am doubtful. Since advance licence holder can import custom duty free, why the advance license hold canot get this exemption while buying goods from EOU against their advance license.  This is one type of straight  foreign exchange earning to the government.  This is my question. Can you please help me.  I am sorry to interrupt you.

Answer:
If inputs are imported without payment of Customs duty, then the question of payment of Customs duty arises. In this situation there is no involvement of payment of GST. The only requirement would be to deposit of Customs duty along with interest when clearing imported goods into DTA. In case the goods are of indigenous origin, then there is no need to pay Customs duty as there is no provision under GST parallel to Section 3 of Customs Act, 1962. (Reply dt. 17/10/2017)