Circular No.ES/96 /2017-18 July 01, 2017
To: Members of the Council
Sub: Important FTP provisions in the context of the implementation of the GST regime applicable w.e.f. 01.07.2017
DGFT vide Trade Notice No.11/2018 dated 30th June, 2017 has issued Important Provisions of the Foreign Trade Policy with the Goods and Services Tax (GST).
The Relevant Chapter-wise Provisions of the FTP 2015-20 are as follows :
For export oriented units (EOUs) they are allowed duty free imports of goods for their authorized operations. In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs.
For the indigenous procurement of goods covered under GST, the EOU will not get ab-initio exemptions. Such supplies would be on payment of CGST/SGST/UTGST/IGST. The taxes so paid will be neutralised by ITC (input tax credit).
Deemed Export Drawback:
The drawback as provided under Chapter 7 would be limited to the refund of basic custom duty only.
Members may kindly make note of the above.
V. ANIL KUMAR