EOUs Enjoy Customs Duty Exemptions Post-GST; Follow Rule 5 for Import Clearance, Claim IGST Input Tax Credit

Export Oriented Units (EOUs) continue to receive customs duty exemptions post-GST as per Notification No. 52/2003-Cus. Imports by EOUs are subject to IGST and compensation cess, but are temporarily exempt until March 31, 2019. Supplies to EOUs are deemed exports, allowing GST refunds. EOUs must follow Rule 5 of the Customs Rules, 2017 for import clearance, and can claim input tax credit on IGST paid. Refunds of IGST are available within two years, with 90% refunded within 10 days of application. Inter-unit transfers attract IGST, and DTA sales require GST payment and customs duty reversal. MEIS/SEIS scrips cannot be used for IGST/CGST payment.

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