Raja M Shanmugham, President said CBIC has recently issued notification No: 54 / 2018 – Central Tax dated 9th October 2018 and giving a clarification that the exporters claiming refund of IGST paid on export of goods can get it even if they import capital goods under EPCG scheme, which is a great relief for the exporting units opted IGST route to claim GST refund.
He also added that his association has been taking up the issue immediately after announcement of the draconian notification No: 39 / 2018 – Central Tax dated 4th September 2018, after making amendment in Rule 96 (10) of the CGST Rules, 2017 retrospectively from 23rd October 2017 mentioning that Advance Authorization holders, EPCG Authorization holders and EOUs which import their requirements without payment of IGST are not eligible for refund of IGST paid on exports of goods.
While noting down the appeal made to Mahender Singh, Member (GST) at TEA, he further said he met Sumit Buatia IRS, Assistant Commissioner, GST Policy Wing on 28th September 2018 also and again requested to resolve the issue.
Despite the permission given for imports made under EPCG scheme, the relief has not been extended for imports (like fabrics) made under Advance Authorization scheme and to resolve this, Raja M Shanmugham said for extending the benefit to imports made under Advance Authorization scheme also, the Association will continue to take up the issue.
