Benefit of two exemption notifications on same shipment allowed: Expert

Q1. We are in the process of setting up a new hotel. We are importing lifts from Thailand, where basic duty is nil under the Asean-India Free Trade Agreement. We want to save IGST through EPCG Authorisation. Can we use two custom notifications (of FTA and EPCG Authorisation) for a single shipment?

In the case of Hindustan Motors [1998 (98) ELT 557 (Tri.Del.), the Tribunal held that simultaneous benefit of more than one notification cannot be denied unless there is a prohibition to the contrary and allowed the benefit under notification No. 156/86-Cus., for basic duty and notification No. 69/87-Cus., for auxiliary duty on the same shipment. On the basis of this judgment, you can claim exemption from basic customs duty under one notification and exemption from IGST under another notification.   

Q2. We are importing raw materials under advance authorisation under notification 18/2015-Cus dated April 1, 2015 as amended by notification 79/2017-Cus dated October 13, 2017. In view of Rule 96 (10) of the CGST Rules, 2017, can we export our finished goods on payment of IGST under refund claim?  

Yes. The restriction under the said Rule 96 (10) operates if your supplier avails the benefit of the said notification 79/2017 and other specified notifications. In the case of imports, the foreign supplier cannot avail the benefit of any notifications, and so the bar on export on IGST payment under refund claim will not come into play. 

Q3. We have our plant in a remote area where the internet connection is very poor. We want to stock transfer our finished goods to our city warehouse for onward sale. We have only one GST registration number for both plant and warehouse. My question is: Do we have to transfer material through a delivery challan; do we have to show the transfer value and GST payable in the delivery challan; and can we move material by putting the 12 digit e-way bill number in the delivery challan without e-way bill physically accompanying the delivery challan? As our plant is unable to generate e-way bill because of poor net connectivity and inexperienced staff, can we generate the e-way bill at our city office and send it to the factory at the time of dispatch? If we show the GST amount in the delivery challan, what will be its implication?

The e-way bill can be generated using a web-based system, SMS-based facility, Android App, bulk generation facility, site-to-site integration or GST Suvidha Provider. Your city office can generate the e-way bill and send to factory but it is more practical for you to use your mobile phone and generate the e-way bill, and then you can SMS the soft copy of e-way bill to the transporter. For procedures you may refer to the FAQ issued by CBIC. For stock transfer, delivery challan is necessary. It must contain the value of goods, tax rate and tax amount, besides other details as given in Rule 55 of the CGST Rules, 2017. That value must appear in the e-way bill. The delivery challan and e-way bill must go with the consignment.