CBIC extends the exemption from IGST and compensation cess to EOUs on imports till March 31, 2021

Apr 01, 2020 | by Avantis RegTech Legal Research Team

Finance & Taxation Compliance

The Central Board of Indirect Taxes and Customs (CBIC) on March 24, 2020, extends the exemption from Integrated Goods and Services Tax (IGST) and compensation cess to Export Oriented Units (EOUs) on imports till March 31, 2021.

However, to exempt EOUs from IGST and compensation cess, CBIC amends the Notification No. 52/2003-Customs, dated March 31, 2003, which exempt specified goods from whole of the Customs duty :

In opening paragraph of the Notification, proviso, has been substituted, namely:


(A) the whole of the duty of customs leviable thereon under the First-Schedule to the Customs Tariff Act, 1975 and the additional duty, if any, leviable thereon under section 3 (1), (3) and (5) of the Customs Tariff Act; and

(B) the integrated tax and compensation cess leviable thereon under sections 3(7) and (9) of the Customs Tariff Act:

Provided that nothing contained in clause (B) above shall apply on or after the April 01, 2021, subject to the following conditions, namely”

[Notification No. 16 /2020-Customs]


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