Commerce Ministry clarifies Issues relating to SEZ and EOUs

Commerce Ministry clarifies Issues relating to SEZ and EOUs

The Ministry of Commerce has issued a circular clarifying all issues pertaining to Special Economic Zones (SEZs) and Export Oriented Units (EOUs) raised by Stakeholders during the COVID-19 lockdown. The Director-General of Export Promotion has clarified the following issues:

  • Pending GST refunds for DTA suppliers
    • The DGEP has asked for the list of such ITC refunds that have not been sanctioned even after 6 months of filing for necessary action.
  • Extension of timelines for e-way bills
    • This issue has already been addressed by the CBIC and the validity of an e-way bill which expires during the period between March 20 to April 15 will be extended till April 30, 2020
  • GST imposed on foreign currency conversion charges
    • Proposal for reducing or eliminating GST imposed on foreign currency conversion charges has been flagged for examination.
  • EOUs maybe granted ab initio exemption from payment of GST
    • No requirement of granting ab initio payment for granting GST on domestic supply by EOUs.
  • Advance loans from commercial banks as an alternative for refunds under GST, Income Tax that is pending disbursal from Government
    • No basis has been provided for this proposal of Government paying the interest against loan advanced by Banks in lieu of refunds of GST, Income Tax, etc
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