Duty Credit Scrips – Long Awaited Closure
The Duty Credit Scrips were introduced with the obvious objective of facilitation of foreign trade and incentivize exporters of goods and services from India. The Duty Credit Scrips were made fully transferable and could be used by the holder to discharge customs duties payable on import of goods. Transfer of Duty Credit Scrips has been held as exempt supply under GST for which hitherto, Revenue sought appropriate reversal of ITC in terms of Rule 42 / Rule 43 of CGST Rules, 2017. The 47th GST Council Meeting demystified the position by recommending insertion of Clause (d) in Explanation 1 to Rule 43 of the CGST Act providing for exemption from reversal of ITC in respect of supply of Duty Credit Scrips.
Through this article, Our Partner, Mr. Dharnendra Kumar Rana and Associate, Ms. Srishti Yadav have analysed whether this amendment would have retrospective or prospective application basis principles of statutory interpretation.
Please click on the below link to read our article titled ‘Duty Credit Scrips – Long Awaited Closure’.