Pre Import Condition for Advance Authorisation | Supreme Court Verdict | All You Need To Know

Описание: What is Pre Import Condition under Advance License?
The pre-import condition, basically says that exporters will have to import raw materials before exporting finished goods under Advance Authorisation.

What was the Supreme Court Verdict on Pre-Import Condition?
The Supreme Court decided that the decision of the government to discontinue pre import condition will not have any retrospective effect and the exporters who failed to comply with the pre import condition between 13th October 2017 to 10th January 2019 will have to pay the corresponding IGST and compensation cess along with applicable interest.

Will Input Tax Credit be allowed?
Yes, the exporters will be allowed to claim refund or input credit on the IGST Paid by approaching the jurisdictional commissioner of customs.

What is the procedure to pay IGST and claim input tax credit for defaulters of Pre Import Condition?
The Customs Circular 16/2023 Dated 7th June 2023 has elaborated the process to pay the corresponding IGST and claim input tax credit:
The Exporter will have to approach the concerned assessment group at Port of Import (POI) with relevant details of each Bill of Entry for the purpose of payment of IGST and Cess along with applicable Interest.
The Assessment group at Port Of Import shall cancel the Out of Charge (OoC) granted on these BEs earlier and indicate reason in remark.
The Bill of Entries (BE) shall be re-assessed so as to charge IGST and Cess in accordance with the Judgement. The payment of IGST and Cess along with Interest shall be made against the Electronic Challan generated on Customs EDI System.
On Completion of the payment, Port Of Import shall make a notional Out of Charge for the Bill of Entries on the Customs EDI System so that the information can be transmitted to GSTN indicating the amount and date of payment.

Will interest be applicable on payment of IGST?
The customs circular no 16/2023 clearly says that the exporters have to pay IGST and compensation cess “ALONG WITH INTEREST”. So yes, applicable interest has to be paid.

How can we help you?
We, at A V International are India’s leading DGFT and Customs Consultants. We are Advance License specialists and can help you with the closure of the pending cases concerning pre-import conditions. And not only this but we can also help you in issuing fresh new advance licenses and compliance of the same.
To know more about our company: please visit our website - https://avigroup.in/

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