DGFT Exempts Diamond Imprest Authorisation Imports from IGST, Duties & Compensation Cess [Read Circular]
The amendment expands duty exemptions available to importers operating under the Diamond Imprest Authorisation scheme.
![DGFT Exempts Diamond Imprest Authorisation Imports from IGST, Duties & Compensation Cess [Read Circular]](https://images.taxscan.in/h-upload/2025/12/10/2111348-dgft-exempts-diamond-imprest-authorisation-imports-igst-duties-compensation-cess-taxscan.webp "DGFT Exempts Diamond Imprest Authorisation Imports from IGST, Duties & Compensation Cess [Read Circular]")
The DirectorateGeneral of Foreign Trade (DGFT) has issued a new notification, amending Para 4.63 of the Foreign Trade Policy (FTP) 2023 to extend significant indirect tax relief for importers operating under the Diamond Imprest Authorisation (DIA) scheme. Also Read:India announces ₹25,060 Cr Export Promotion Project to Offset Impact of U.S. Tariff Hike The notification, published...
The DirectorateGeneral of Foreign Trade (DGFT) has issued a new notification, amending Para 4.63 of the Foreign Trade Policy (FTP) 2023 to extend significant indirect tax relief for importers operating under the Diamond Imprest Authorisation (DIA) scheme.
The notification, published for inclusion in the Gazette of India (Extraordinary), revises the scope of duty exemptions to include Integrated Tax and Compensation Cess, in addition to the existing customs duty exemptions already available under the policy.
The Diamond Imprest Authorisation (DIA) framework is a duty-free import mechanism under the FTP that allows eligible exporters in the gems and jewellery sector to import rough or unpolished diamonds without payment of customs duties. Consequently, all major customs and GST-linked charges are waived when the imported diamonds are used for authorised cutting, polishing or processing operations intended for re-export.
Para 4.63 of FTP 2023 earlier exempted imports under the DIA scheme from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-Dumping Duty, Countervailing Duty, Safeguard Duty and Transition Product Specific Safeguard Duty wherever applicable.
The revised paragraph now not only retains these exemptions but also explicitly provides that such imports are exempt from the whole of Integrated Tax (IGST) and Compensation Cess leviable under sub-sections (7) and (9) of Section 3 of the Customs Tariff Act, 1975.
The amendment has been issued by the DGFT under powers derived from Section 3 and Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, read with para 1.02 of the Foreign Trade Policy 2023.
The notification takes effect immediately and has been issued under the name of Ajay Bhadoo, Director General of Foreign Trade & Ex officio Addl. Secretary to the Government of India.
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