CBIC extends IGST and Compensation Cess Exemption to Goods Imported against AA/EPCG authorizations till 31st March [Read Notification]

CBIC - Extends - IGST - and - Compensation - Cess - Exemption - to - Goods - Imported - against - AA - EPCG - TAXSCAN

The Central Board of Indirect Taxes and Customs (CBIC) has extended the exemption from Integrated Tax (IGST) and Compensation Cess on goods imported against AA/EPCG authorizations till 31st March 2022.

A notification issued on Tuesday regarding this stated that “In exercise of the powers conferred by sub-section (4) of section 51A of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect Taxes and Customs, on being satisfied that it is necessary and expedient to do so, hereby amends the notification No.19/2022-Customs (N.T.) dated the 30th March 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide S.O. 1512 (E), dated the 30th March, 2022, namely, – In the said notification, in clause 2, for the figures, letters and word “30th November, 2022”, the figures, letters and word “1st April, 2023”, shall be substituted.”

Earlier, the government has extended IGST (Integrated Goods and Service Tax) and compensatory cess exemptions for goods procured under various export promotion schemes till June 30, 2022, providing assistance to exporters.

IGST (Integrated Goods and Service Tax), which will be governed by the IGST Act, is a tax levied on all inter-state supplies of goods and/or services under the GST. In both circumstances of import into India and export from India, the IGST will apply to any supply of goods and/or services.

The Compensation Cess is a tax that will be levied on certain goods and/or services, or both, until July 1, 2022. The Cess will reimburse states for any revenue losses incurred as a result of the GST adoption. Those who have chosen the compensation levy will not have to pay this Cess.

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