The much awaited notification on STPI / EOU exemption from IGST on import of goods is released extending the benefit of exemption from Integrated Tax and Compensation Cess up to 31.03.2019 on goods imported by STPI/ EOU.
You would recall that in October last year we had requested for this exemption which was allowed until 30 September 2018 (Notification No 78/ 2017 – Customs dated October 13, 2017). This came as a huge relief for EOU/ STPI units as till the issuance of the said notification, imports of capital goods attracted IGST and no refund was eligible of the said duties, thereby increasing the cost of doing business.
Over the last few months NASSCOM has been asking for an extension of this exemption and had very recently represented the matter with the GST council secretariat and concerned CBIC officials. We are glad that our recommendations are considered and the exemption is now available till March 31, 2019.