Business · India Bureau
Exporters push for GST credit recognition on IGST payments
India's export community is demanding clearer rules on Input Tax Credit (ITC) eligibility for Integrated GST paid through ICEGATE channels, citing compliance challenges with Advance Authorisation and Export Promotion Capital Goods schemes.
LSN India ·
Exporters across India are calling for policy clarification on GST input tax credit treatment, highlighting gaps in current reform measures that they say penalise legitimate export operations. The issue centres on IGST payments made via ICEGATE—the customs electronic platform—which exporters argue should qualify for ITC but remain in a regulatory grey zone.
The problem is particularly acute for businesses operating under Advance Authorisation (AA) and Export Promotion Capital Goods (EPCG) schemes. Exporters have defaulted on certain compliance requirements while awaiting clarity on their tax credit entitlements, creating a backlog of unfinalised accounts and unresolved liabilities.
Industry representatives are advocating for either an explicit reassessment mechanism or formal recognition that IGST paid through ICEGATE challans qualifies for ITC. Without such clarification, they contend, exporters face unintended financial burdens that undermine competitiveness and complicate their ability to meet scheme conditions.
The demand reflects growing frustration that recent GST reforms, while beneficial in some areas, have not adequately addressed export-specific taxation issues. Stakeholders are urging the government and tax authorities to issue guidance that resolves the ambiguity and permits businesses to regularise their positions without punitive consequences.