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2023 (6) TMI 1295 - AUTHORITY FOR ADVANCE RULING, UTTAR PRADESHExemption from GST - Duty Credit Scrips issued under RoSCTL scheme issued by Directorate General of Foreign Trade - exempt under GST schedule I, SI. No.-122A HSN code 4907 or not - applicability of N/N. 35/2017-Central Tax (Rate) dated 13th October 2017 to all duty credit scrips or not. HELD THAT:- As per the para 3.02 of the chapter 3 of the FTP, Duty Credit Scrips shall be granted as rewards under MEIS and SEIS. The Duty Credit Scrips and goods imported / domestically procured against them shall be freely transferable. The Duty Credit Scrips can be used for: (i) Payment of Basic Customs Duty and Additional Customs Duty specified under sections 3(1), 3 (3) and 3 (5) of the Customs Tariff Act, 1975 for import of inputs or goods, including capital goods, as per DOR Notification, except certain specified items. From this, it is clear that the duty credit scrips are the instruments to award incentives to the exporters with the objective of the export promotion by allowing them to set off the basic customs duty against it. It is also to be noted that the duty credit scrips are not allowed to set off the IGST/CGST/SGST liability. The manner of issue of duty credit for goods exported under the Scheme for Rebate of State and Central Taxes and Levies, subject to such conditions and restrictions as specified herein, in accordance with Government of India, Ministry of Textiles' Notification No. 12015/11/2020-TTP dated the 13th August, 2021 has been discussed in Notification No. 77/2021-Customs (N.T.) dated 24th September, 2021. Duty Credit Scrips issued under RoSCTL Scheme is not taxable falling under HSN code 4907 & inserted vide SI. No.-122A under Notification No.35/2017-Central Tax (Rate) dated 13.10.2017. Regarding, whether it is applicable to all duty credit scrips or not? It appears that it is applicable to all the duty credit scrips. It is pertinent to mention that only specific entry has been exempted i.e. Duty Credit Scrips.
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