Question
Vide Notification No. RE 53 under Foreign
Trade Policy (Ministry of Commerce), restriction of exemption on IGST for Import
under Advance Authorization only if it is imported First Is removed.
1) Does this mean that there is exemption even if you Export first and Import
later?
2) If that is correct, can we Export first paying IGST and claim refund of IGST
paid and later Import under Advance Authorization without payment of IGST? Is
this Permissible?
Answer
Notification No 54/2018 of Central Tax read with
Rule-96 of CGST Rules, 2017 put restriction on refund of IGST paid on export of
goods if input are procured against advance authorization. Therefore you can not
take advance authorization against the goods exported on payment of IGST.
The notification No. RE 53 of FTP can be availed if the goods are exported under
LUT so that the basic theme of notification No-54/2018 of Central Tax is not
disturbed. (Reply dt.22/04/2019)