FM should clear the air on 'pre-import' matter

The Customs have started sending show-cause notices (SCN) to several exporters alleging violation of 'pre-import' condition in case of imports without payment of IGST under advance authorisations

The Customs have started sending show-cause notices (SCN) to several exporters alleging violation of ‘pre-import’ condition in case of imports without payment of Integrated Goods and Services Tax (IGST) under advance authorisations. The exporters are surprised because the matter regarding the validity of the ‘pre-import’ condition under advance authorisation scheme is pending before the Supreme Court.

When the government introduced the Goods and Services Tax regime on July 1, 2017, IGST on imports under advance authorisations was not exempted. The exporters protested against the decision and so, the government decided to grant IGST exemption on imports under advance authorisations for physical