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Corporate Laws Central Ministry of Commerce and Industry Foreign Trade (Development and Regulation) Act, 1992

DGFT Public Notice: Amendments in Para 4.10 (i) of Handbook of Procedures, 2023

13-Oct-2023 | Public Notice No. 34/2023

Directorate General of Foreign Trade (DGFT) has issued a Public Notice, effective from October 13, 2023, introducing amendments to Para 4.10 (i) of the Handbook of Procedures, 2023. These amendments aim to facilitate ease of doing business and reduce transaction costs, specifically in relation to the Advance Authorization Scheme.

Key Amendments:

1. Input Tax Credit on GST Paid Material: The amended Para 4.10 (i) now allows for the availing of Input Tax Credit on GST paid material. This provision applies to material imported or procured against the Advance Authorization Scheme.

2. Transfer of Duty-Free Material: When duty-free material, imported or procured against Advance Authorization, is transferred from one unit of a company to another unit for manufacturing purposes, prior intimation to the jurisdictional Customs Authority is required.

3. Transfer with GST Payment: In the case of transferring duty-free imported or indigenously procured materials, on which GST has been paid, between units located in the same or different States, the availment of Input Tax Credit will be governed by the provisions of the GST law and the rules made thereunder.

4. Non-Claim of Input Tax Credit on Transferred Input: It's important to note that the benefit of Input Tax Credit cannot be claimed on such transferred input.

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