SME Chatroom: Several issues require the attention of DGFT

Supplies to advance authorisation holder are treated as deemed exports under the GST laws

The Foreign Trade Policy (FTP) says that advance authorisation can be used for procurement from an Export Oriented Unit (EOU). It also says that EOUs must surrender the Basic Customs Duty (BCD) on inputs and charge GST on clearances into Domestic Tariff Area (DTA). There is no provision under GST laws to clear from EOU to DTA without GST payment against advance authorisation. Also, what happens when EOU materials are used by DTA in the manufacture of export goods? The BCD surrendered becomes part of the price and not charged as duty by the EOU. So, it cannot become part