IMPORT OF SPARE PARTS UNDER EPCG SCHEME., Goods and Services Tax - GST

[KANHAIYA AGRAWAL]

Please guide me on the GST implications on import of spare parts under the EPCG scheme.

Is IGST payable ?

Thanks in advance.

Posts / Replies

[KANHAIYA AGRAWAL]

Please guide me on the GST implications on import of spare parts under the EPCG scheme.

Is IGST payable at the time of import of goods ? and while exporting goods under EO how to export either with payment or LUT?

Thanks in advance.

[Sadanand Bulbule]

Dear querist

Capital goods imported under EPCG Authorisation for physical exports are exempt from IGST and Compensation Cess, leviable thereon under the sub-section (7) and sub-section (9) respectively of Section 3 of the Customs Tariff Act, 1975.

[Sadanand Bulbule]

Refer Notification No.16/2015-20 dated 01/07/2022 issued by the DGFT, Ministry of Commerce ,GoI as amended to Foreign Trade Policy 2015-2022.

[KASTURI SETHI]

I support the views of Sh. Sadanand  Bulbule,  Sir. 

Also peruse Notification No. 26/23-Customs dated 1.4.23.

[Shilpi Jain]

5.01 of FTP

Capital goods for the purpose of the EPCG scheme shall include:

(i)

(ii)

(iii) Spares, moulds, dies, jigs, fixtures, tools & refractories; and

...............

So spares of CG can be imported under EPCG.