Is EOU required to pay IGST on imports?

Posted on 20 April 2023 Category : GST EXIM

Is IGST attracted on supplies by EOUs?

This post explains about IGST attraction on supplies by EOUs.

IGST by EOU on imports.

Export Oriented Units (EOUs) constitute a very important sector in the country’s Export Production scenario. They have become dominant players in our export strategy, and their share in the Country’s export performance is about 10%.

Goods and service tax regime in India plays a pivotal role to change Indian economy. How does exports and imports influenced when implementing GST in India? How does EOU function in GST regime? Is IGST payable on supplies effected by EOUs? How are duties treated on imports by Export Oriented Units?

According to GST Law, the EOUs will continue to get exemption from payment of the basic Customs Duty, however they will have to pay IGST on imports.

On the IGST paid on import of inputs, ITC would be available which can be utilized for payment of GST payable on the goods cleared in the DTA. Refund of the unutilized ITC can also be claimed under Section 54(3) of CGST Act.

The above information is about IGST payment by EOU under GST regime. If you

would like to add more information about procedural changes in EOU after GST

implementation, share below your thoughts below:

Re warehousing procedures under STP and EOU units.

Local procurement of goods by EOU under GST

Export obligation before GST after GST under EPCG scheme.

Utilization of Advance Authorization scheme before GST and after GST

chapter 7 of the Foreign Trade Policy

Conditions to sell in DTA under GST regime

Is GST payable on supplies to Export Oriented Units?

Is free import of capital goods allowed to EOU against Procurement certificate?

Is IGST paid on imports by EOU is refundable?