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Extension of upfront exemption from IGST for Export Oriented Units till March 31, 2020

March 21, 2019

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We are pleased to inform you that the benefit of upfront exemption from Integrated GST and cess for Export Oriented Units have been extended for a period of 1 year, i.e, till March 31, 2020.  In this regard, Ministry of Commerce & Industry has issued notification no. 57/2015-20 dated March 20, 2019 amending Para 6.01(d)(ii) of Foreign Trade Policy 2015-20 to this effect. The corresponding customs notification shall be issued shortly and we shall keep you informed on the same.

We would like to mention that in order to provide boost to Export Oriented Units (EOU), the government had earlier, vide notification no. 65/2018-Cus dated September 24, 2018 extended the benefit of upfront exemption from October 2018 to March 31, 2019.

As you are aware, NASSCOM has been pursuing this demand with the GST council to consider extension of this benefit to provide an impetus to the export oriented units. This move is expected to provide a huge relief to the industry as these companies have huge investments by way of capital expenditure.

Do contact us for any clarification or further discussion.


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