Date : 24th January 2019 (Thursday)
 
Time : 3:00 PM – 4:00 PM
 
The Government has, after a long standing dispute with the exporting community, done away with the pre-import condition for goods imported under the Advance Authorization Scheme in cases where the importer intended to avail the benefit of exemption from payment of IGST.

In addition, the Export obligation can now be fulfilled by deemed exports in addition to physical exports. The said changes have been brought about vide Notification No. 1/2019- Cus., dated 10.01.2019. Connecting amendments have also been made in GST provisions.

Notably, the condition of pre-import was originally introduced in October, 2017 to exempt the IGST on imports and ease the liquidity among exporters post the implementation of GST. However, the said conditions caused more pain than providing relief to the exporters. For the past several months, the Directorate of Revenue Intelligence (DRI) has been investigating the issue relating to exemption of IGST claimed on import of raw materials against Advance Authorisations.

To this end, several exporters have deposited duties with the Government exchequer. Post recent change, it will be interesting to see, the way forward for the exporters availing benefit of IGST under Advance Authorization scheme especially in view of newer conditions imposed.

To discuss the changes brought about by the recent Notifications, Lakshmikumaran and Sridharan (L&S) is organizing a conference call on 24th January 2019. In this conference call, Mr. B L Narasimhan, Principal Partner, L&S will discuss the background of the dispute, the issues faced by the exporters post implementation of GST pertaining to Advance authorization with a special focus on the pre-import condition and what the new amendments have in store for the exporters.