Reimbursement of CST – DGFT amends procedure
Paras (viii) and (ix) of Appendix 14-I-I, for reimbursement of CST on supplies made to EOUs, EHTP and STP, read as
(viii) The reimbursement will be made on quarterly basis. No claim for reimbursement will be normally entertained if not claimed within a period of six months from the completion of the quarter in which the claim has arisen. In case of procurement of goods against payment in installments, the CST reimbursement claim may be made in the quarter in which the full payment has been effected against the invoice/bill. In exceptional cases, the Development Commissioner may consider delayed applications when received after the expiry of the last date for submission of such application but within six months from the last date with a late cut @ 10% on the entitlement after satisfying that the delay was due to genuine grounds.
(ix) Only one consolidated claim for a quarter will be admitted for reimbursement of CST. No supplementary claim shall be entertained.
Now this is changed to
(viii) Reimbursement of CST will be made on quarterly basis. The application for claiming reimbursement should be filed within a period 6 months from the completion of the quarter in which the claim has arisen. In case of procurement of goods against payment in installments, the CST reimbursement claim may be made in the quarter in which the full payment has been effected against the invoice/bill. Whenever application is received after expiry of last date of submission of such application, provisions of para 9.3 of the HBP Vol.1, would apply.
(ix) Application for supplementary claim will be considered as per provisions of para 9.4 of HBP Vol I
And para 9.4 of the HBP reads as,
Supplementary Claims:
Wherever any application for supplementary claim is received, within specified time limits, such application may also be considered
after imposing a cut @10% on the entitlement.
So now there is no discretion for the Development Commissioner and delayed applications will be accepted with a 10% cut.
DGFT PUBLIC NOTICE NO. , Dated: August 24, 2007