New Delhi, Mar 22 (KNN) The Commerce Ministry has notified exemption from IGST (Integrated Goods and Service Tax) and compensation cess under Advance Authorization, Export Promotion Capital Goods (EPCG) and Export Oriented Units (EOU) scheme up-to March 31, 2020.

An Advance Authorization is issued to allow duty free import of inputs, which are physically incorporated in export product (making normal allowance for wastage).

EPCG is an export promotion scheme under which an exporter can import certain amount of capital goods at zero duty for upgrading technology related with exports.

The Export Oriented Units (EOU) scheme was introduced to boost exports, increase foreign earnings and created employment in India.

The notification of Directorate General of Foreign Trade (DGFT) said, “Amendments to Foreign Trade Policy 2015-2020 - Extension of Integrated Goods and Service Tax (IGST) and Compensation Cess exemption under Advance Authorisation, EPCG and EOU scheme up-to March 31, 2020.”

FTP 2015-20 provides a framework for increasing exports of goods and services as well as generation of employment and increasing value addition in the country, in line with the ‘Make in India’ programme.

The Policy aims to enable India to respond to the challenges of the external environment, keeping in step with a rapidly evolving international trading architecture and make trade a major contributor to the country’s economic growth and development. (KNN/JM)