Impact on EPCG scheme after introduction of GST in India.

Impact on EPCG scheme after introduction of GST in India.

EPCG means Export Promotion Capital Goods. If Mr. James, an exporter needs to purchase leather manufacturing machinery to produce leather for export purpose, he can approach DGFT to get an EPCG license under he can import machinery without paying all import duties. The EPCG license can be obtained by executing necessary undertaking to export particular value of exports (in some cases quantity also) depends up on the duties he avails at the time of import.

Impact on EPCG scheme after introduction of GST in India
So under EPCG scheme, Mr. James can import the quantity and value of machinery up to a limit mentioned in EPCG scheme as per terms and conditions mentioned, without paying any import duties and taxes to India. That means, Mr. James can avail all import duties and taxes including excise duties, additional duties and cesses apart from basic customs duty.

w exporters are worried, after implementation of GST, whether an importer under EPCG has to pay GST and gets only import exemption on basic customs duty at the time of import where such GST is adjusted or refunded at later stage by blocking his money for a good time duration.

Under post GST implementation in India, if an importer under EPCG scheme has to pay GST initially and gets refunded or adjusted later stage, and only gets exemption of basic custom duty, that would be a blockage of money for him. In other words, expenses for import against EPCG scheme will be costlier after introduction of GST in India.

Click here to know GST rate on Goods and Services

GST Exemption list of goods and services

Find HSN number or Service tariff code for GST

GST registration guidelines

Indian GST Laws

How to export your goods?

How to make DA mode of payment safe

Transferability of Bill of Lading

Transhipment - A redefinition

Travelers to India under import duty exemption, Frequently Asked Questions Part 2

Triangular export

Triangular shipment

Types of Insurance Documents.

How to make delay in delivery of Shipment?

How to minimize import cargo clearance time? An open logic proposal to WTO

How to obtain a duplicate BL, if original bill of lading lost.

How to obtain GSP - Certificate of Origin?


How to obtain Phyto sanitary certificate. What is phytosanitary certification

How to obtain waiver on detention/ demurrage on imported goods/container from Shipping company/CFS

How does a Running bond work?

How does Bill of Lading work in DP payment terms?

How does Bill of Lading work in Sight LC

How does CENVAT Credit work?

Why need Certificate of Origin

Why prefer exports?

How many types of imports in India. Types of bills of Entry in India

How many types of shipping bills in export

How to add Line number in Import General Manifest in Custom in India

Import General Manifest (IGM)

Transferability of Bill of Lading

GST scheduled rate on Massage apparatus, psychological aptitude testing apparatus, ozone therapy, oxygen therapy, aerosol therapy, artificial respiration, Mechano-therapy appliances

GST payable rate on Breathing appliances and gas masks

GST on Orthopaedic appliances

GST payable rate on Apparatus based on the use of X-rays or of alpha, beta or gamma radiations

GST slab rate on Apparatus

GST taxable rate on Machines and appliances for testing the hardness, strength, compressibility

GST amount of rate on sale or purchase of Machines and appliances for testing the hardness, strength, compressibility

GST payable rate on sale or purchase of Hydrometers and similar floating instruments, thermometers, pyrometers, barometers

GST rate on Instruments and apparatus for measuring

GST rate on Gas meter, liquid meter or electricity supply meter or production meters

GST slab rate on Oscilloscopes, spectrum analysers and other instruments and apparatus

GST slab rate on Parts and accessories for machines, appliances, instruments or apparatus

GST on Automatic regulating or controlling instruments and apparatus

GST on parts of Crutches, Wheel chairs, walking frames, tricycles, Braillers and Artificial limbs

GST rate on Assistive devices, rehabilitation aids and other goods for disabled

GST on Patent Ductus Arteriosus

GST on Coronary stents and coronary stent systems for use with cardiac catheters




Jitu Panjri: our import clearence under EPCG licence GST 12% is refundable or not only basic duty exempted

sunil kumar: what is the condition for importers for imports of capital goods in EPCG Scheme in GST regime

hardik: EPCG cargo duty & GST Applicable

Chandan Saha: EPCG capital goods duty under GST

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers