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Taxation Central Ministry of Finance Customs Act, 1962

CBIC issues notification regarding payment of IGST on Raw Sugar Imports under Advance Authorisation(AA)-to-TRQ Conversion

27-Aug-2026 | Circular No. 37/2026 -Custom

CBIC has issued notification regarding payment of IGST on Raw Sugar Imports under Advance Authorisation (AA)-to-TRQ Conversion with effect from 27th August 2026 Pursuant to DGFT Notification No. 31/2026-27, which provided for a 10 lakh MT TRQ for raw sugar and permitted one-time conversion from the AA Scheme to the TRQ Scheme. Where IGST became payable, the AA holder was required to approach the concerned Assessment Group at the Port of Import (POI) for cancellation of the Out of Charge (OOC) and reassessment of the Bill of Entry for levy of IGST. The IGST was required to be paid through an electronic challan generated in the Customs EDI System, following which a notional OOC was issued for transmission of the IGST amount and date of payment to the GSTN portal. The interest liability arising from such IGST payment was waived, and the reassessment and notional OOC procedure could be undertaken only once for a particular Bill of Entry. Further, ITC relating to the reassessed Bill of Entry would be enabled subject to the eligibility and conditions prescribed under Sections 16, 17 and 18 of the CGST Act, 2017 and the rules made thereunder.

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