The Tirupur Exporters Association (TEA) has appreciated the move made by the Central Board of Indirect Taxes and Customs (CBIC) which has issued a notification No: 54 / 2018 – Central Tax dated 9th October 2018, citing a clarification that the exporters, entitled to the refund of IGST paid on export of goods, can get it even if they import capital goods under Export Promotion Credit Goods (EPCG) scheme.
Raja M Shanmugham, President, TEA said that it was a great relief for the exporting units who opted for the IGST route to claim GST refund.
Notably, the CBIC had announced last month that the centre has made an amendment to the 96 (10) rule of CGST citing that Advance Authorization holders, EPCG Authorization holders and EOUs which import their requirements without paying IGST are not eligible for refund of IGST paid on exports of goods.
Although the relaxation has been provided by the government to the exporters who import machinery, the Indian textile and apparel body has urged the central government to extend these benefits to other sectors like imports of fabrics.
Raja M Shanmugham said in a statement, “Despite the permission given for imports made under EPCG scheme, the relief has not been extended for imports (like fabrics) made under the Advance Authorization scheme and to resolve this, the association will continue to take up the issue of extending the benefit to imports made under Advance Authorization scheme in front of the govt.”