Duty Free Import Authorization (DFIA) licences, issued to allow duty free import of inputs that go into manufacture of products that are exported, is covered under HSN code 4907 and shall attract applicable GST.
DFIA cannot be considered as ‘Duty Credit scrip’ as envisaged under Sr. No. 122A of Notification No. 1/2017-Central Tax (Rate) inserted vide Notification No. 35/2017-Central Tax(Rate) even though it falls under Heading No. 4907.
As per Para 3.02 of FTP, Duty Credit Scrips are granted as rewards under MEIS and SEIS and can be used to pay various duties/taxes to Central Govt. whereas ‘there is a lot of difference between Duty Credit Scrips and DFIA’. When the FTP itself has segregated both Duty Credit Scrips and DFIAs in different Chapters with different procedures, it would not be proper to consider the two schemes as one and the same.
AUTHORITY FOR ADVANCE RULINGS, MAHARASHTRA
Spaceage Syntex (P.) Ltd., In re
ORDER NO. GST/ARA/13/2018-19/B-86
AUGUST 6, 2018
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