In Public Notice No. 34/2023 dated October 13, 2023, the Directorate General of Foreign Trade (DGFT) has introduced a modification to Para 4.10 (i) of the Handbook of Procedures, 2023. This amendment permits the utilisation of Input Tax Credit (ITC) for materials on which GST has been paid within the framework of the Advance Authorization Scheme, which will enhance the business environment’s convenience and lower transaction expenses.
| Existing para 4.10 (i) | Amended para 4.10 (i) |
| Transfer of any duty-free material imported or procured against Advance Authorisation from one unit of a company to another unit for manufacturing purpose shall be done with prior intimation to jurisdictional Customs Authority. Benefit of Input Tax Credit shall not be claimed on such transferred input. | Transfer of any duty-free material imported or procured against Advance Authorisation from one unit of a company to another unit for manufacturing purpose shall be done with prior intimation to jurisdictional Customs Authority. In case of transfer of duty free imported or indigenously procured materials, on which GST has been paid, between the units located in same or different States, the availment of Input Tax Credit shall be governed as per the provisions of the GST law & the rules made thereunder. |
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