Centre extends IGST, compensation cess exemption under various export promotion schemes

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Centre has extended Integrated Goods and Service Tax (IGST) and compensation cess exemptions for goods procurement under certain export promotion schemes till March 2020.

Key Facts:

  • This decision is aimed at giving relief to exporters as they do not have to pay IGST at initial point itself.
  • In the GST regime, exporters have to pay the indirect tax and then seek refund, which is cumbersome process.
  • These exemptions to exporters is for buying inputs domestically or importing for export purposes under Export Promotion Capital Goods (EPCG) scheme, export oriented unit (EOU) scheme and advance authorization of foreign trade policy 2015-20.

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