This Tax Alert summarizes a recent ruling of the Gujarat High Court1 which discussed the issue that whether a taxpayer is entitled to refund of the IGST paid on import of capital goods under Export Promotion Capital Goods (‘EPCG’) Scheme for the interim period between 1 July 2017 i.e. Goods & Services Tax (‘GST’) implementation date till the amendment in the Foreign Trade Policy 2015-2020 (‘FTP’) and the corresponding amendment in exemption notification (‘Interim Period’).
Except for the interim period, customs duty was completely exempt on import of capital goods under EPCG Scheme. The intent of the government was amply clear to exempt from payment of basic customs duty (‘BCD’) and additional duty of customs on imports under EPCG Scheme.