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SC turns down petition by govt against IGST exemption to exporters

In advance authorisation licence is issued to allow duty-free import of inputs, which are physically incorporated in export products

Indivjal Dhasmana  |  New Delhi 

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The has dismissed the petition filed by the government and the against the Delhi high court order to allow an exemption from the integrated goods and services tax (IGST) for imports done under the advance authorisation licenses. This would release working capital for those using these licenses.

In advance authorisation licence is issued to allow duty-free import of inputs, which are physically incorporated in export products.

Explaining the case, Abhishek Rastogi, who argued the case for in the Supreme Court, said the Delhi high court had in 2017 allowed to avail the exemption.

Following this, the had amended rules under the GST laws to allow the exemption from October 13, 2017. However, importers wanted exemption for earlier period as well.

The government, the directorate general of foreign trade (DGFT) and the GST Council, meanwhile, filed a special leave petition (SLP) in the against the Delhi high court order.

This was dismissed by the apex court on Friday.

"The dismissal of the SLP means that the exporters are under no threat to pay taxes on goods imported under advance authorisation licenses," Rastogi said.

He said exporters were facing huge working capital crunc when imports are subject to despite advance authorisation licenses.

First Published: Fri, March 29 2019. 17:10 IST
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