GST – Started By: – Kumar Kedia – Dated:- 24-1-2019 Last Replied Date:- 29-1-2019 – Hi Sir, I have a query regarding why if imports are made after completing the export obligation then those imports shall be used only in manufacture and supply of taxable goods. What is the intention of government in making such change in Notification 1/2019- CGST? Thanks – Reply By KASTURI SETHI – The Reply = Dear Kedia Ji, Notification No.1/19-Central Tax dated 15.1.19 has made two changes as under: (i) Insertion of requirement of a certificate from C.A. (ii) Omission of words, on pre-import basis in the Explanation given in Notification No.48/2017- CT dated 18.10.17. The condition of producing a certificate from C.A. to the effect that inputs imported under Advance Authorisation have been used only in the manufacture and supply of taxable goods, was already in force vide Para No.4.16 of Foreign Trade Policy (2015-2020). The words dutiable goods have been replaced with the words, taxable goods in the
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n, the goods imported against such Advance Authorisation shall be utilized only in the manufacture of dutiable goods whether within the same factory or outside (by a supporting manufacturer). For this, the Authorisation holder shall produce a certificate from either the jurisdictional Central Excise Authority or Chartered Accountant, at the option of the exporter, at the time of filing application for Export Obligation Discharge Certificate to Regional Authority concerned. 6[4.14: Details of Duties exempted (FTP 2015-20) Imports under Advance Authorisation are exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, wherever applicable. Import against supplies covered under paragraph 7.02 (c), (d) and (g) of FTP will not be exempted from payment of applicable Anti-dumping Duty, Countervailing Duty, Safeguard Duty and Transition Product Specific Safeguard Duty
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thereafter, material is to be imported free of tax under Advance Authorization. Prior to 15.1.19, situation was contra. In my reply dated 27.1.19, I have detailed of Customs duties/taxes for which exemption is being availed under Advance Authorisation. Though export is zero rated, yet exported goods are treated as duty paid goods for the purpose of availment of ITC. No ITC is required to be reversed in respect of inputs used in the manufacture of exported goods. Duty/Tax paid on finished goods, if paid, is also refunded by way of refund/rebate. So many other benefits have also been provided in respect of exportation. After availing these benefits, Govt. intends to tax the goods manufactured out of those materials/inputs which are to be imported free of Customs duties including IGST and Compensation Cess (mentioned above in reply dated 27.1.19). Hence these goods must suffer CGST/SGST or IGST when cleared for home consumption so that indigenous goods should be able to compete with thos
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gainst such Advance Authorisation shall be utilized only in the manufacture of dutiable goods whether within the same factory or outside (by a supporting manufacturer like Job worker).Waste / Scrap arising out of manufacturing process, as allowed, can be disposed off on payment of applicable duty even before fulfilment of export obligation – Reply By Kumar Kedia – The Reply = Dear Sirs, Thank you for your replies I agree with the fact that after completion of export obligation if any inputs are imported same shall be used in taxable goods and cannot be transferred but I am extremely sorry that I am not able to understand that :- In notification 1/2019 or even in pre-GST era as stated in the proviso:- Provided that goods so supplied, when exports have already been made after availing input tax credit on inputs used in manufacture of such exports, shall be used in manufacture and supply of taxable goods (other than nil rated or fully exempted goods) and a certificate to this effect from
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