BCD credit on DTA sales by an EOU

444 views 1 replies

Dear Sirs,

Can a EOU get Input credit on Customs duty paid while clearing their finished goods in DTA ?

 

 

Replies (1)

Hey! Regarding your question on BCD (Basic Customs Duty) credit for an EOU (Export Oriented Unit) clearing finished goods into DTA (Domestic Tariff Area):

Can an EOU get Input Credit on Customs Duty paid while clearing finished goods in DTA?

  • Generally, EOUs are exempt from customs duty on import of inputs for export production under the EOU scheme.

  • When an EOU clears finished goods to the DTA, Customs duty including BCD is payable on such goods as per Customs Tariff.

  • However, the EOU is NOT eligible to claim Input Tax Credit (ITC) on Basic Customs Duty (BCD).
    This is because BCD is not considered a part of GST and is not available as credit under GST law.

  • Input Tax Credit is available only on IGST, CGST, and SGST paid on inputs and input services.

  • In case of customs clearance, Integrated GST (IGST) paid on imports is eligible for ITC, but BCD is not eligible for credit.

Conclusion:

  • EOU must pay BCD while clearing goods to DTA.

  • No credit of BCD is allowed.

  • ITC on IGST (if applicable) can be claimed.


Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 17 July 2026
Article Assistant and B.com pass

BANSAL YOGESH AND CO

Gautam Budh Nagar

B.Com

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
ARTICLESHIP 10 July 2026
Article Assistant

N S Gokhale & Co

Thane

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details