Amendments to Foreign Trade Policy 2015-20 - Extension to Integrated Goods and Service Tax (IGST) and compensation Cess exemption under EOU scheme till 01.10.2018 - regd- (Ministry of Commerce and Industry) (07 Jun 2018)

MANU/DGFT/0086/2018

Customs

In exercise of powers conferred by Section 5 of FT (D&R) Act, 1992, read with Paragraph 1.02 of the Foreign Trade Policy, 2015-20, as amended from time to time, the Central Government hereby makes following amendments in Foreign Trade Policy 2015-20:

1. Existing Para 6.08(b) reads as under:

For services, including software units, sale in DTA in any mode, including on line data communication, shall also be permissible up to 50% of FOB value of exports and /or 50% of foreign exchange earned, where payment of such services is received in foreign exchange.

2. Para 6.08(b) is amended to read as under:

For services, including software units, sale in DTA in any mode, including on line data communication, shall also be permissible up to 50% of FOB value of exports and /or 50% of foreign exchange earned, where payment of such services is received in foreign exchange. However, sale in DTA in respect of services classified under Chapter Heading 9988 and 9989 under GST, but covered in LOP/para 9.31 of FTP as manufacturing of goods, will continue to be covered under para 6.08(a) above. At the time of DTA clearance, applicable GST and compensation cess as per GST classification would apply.

Effect of this Notification: sale in DTA in respect of certain services classified under Heading 9988 is continued to be covered under para 6.08(a) of FTP.

Tags : POLICY FOREIGN TRADE AMENDMENTS