CBIC Clarifies IGST Payment Procedure for Raw Sugar Imports Under Advance Authorisation Converted to TRQ Scheme

Government of India 
Ministry of Finance: Department of Revenue
Central Board of Indirect Taxes and Customs
Drawback Division

New Delhi, dated the 27th August 2026

To,
All Principal Chief Commissioners/Chief Commissioners,
All Principal Directors General/Directors General,
All Principal Commissioners/Commissioners,under CBIC

Ma'am/Sir,

Subject:  Modalities  for  payment  of  exempted  GST  at  the  time  of  import  of  RawSugar   actually   imported   under   Advance   Authorisation   (AA)   Scheme   to   beconverted into Tariff Rate Quota (TRQ) Scheme – Reg.

1.Kind  reference  is  invited  to  Notification  No.  31/2026-27  dated  20.08.2026issued  by  DGFT amending  the  import  policy  condition  for  “Raw  Sugar”  classifiedunder Exim code 170114 of chapter 17 of ITC(HS), 2022 – Schedule – I and PublicNotice No. 27/2026-27 dated 20.08.2026 detailing the modalities for the allocationof  the  10  Lakh  MT  Tariff  Rate  Quota  (TRQ)  for  Raw Sugar  along  with  theModalities  for  one  time  conversion  from  Advance  Authorisation  (AA) Scheme  toTariff Rate Quota (TRQ) Scheme.

2.The  matter  of  payment  of  IGST  in  respect  of  the  quantity of  Raw  Sugaractually imported under Advance Authorisation (AA) Scheme, has been examinedin the Board.

3.The following procedure for payment of IGST shall be adopted at the port ofimport (POI): -

(a)  for  the  relevant  imports  where  the  AA  holder  is  required  to  pay  IGST,  the  AAholder  may approach  the  concerned  assessment  group  at  the  POI  with  relevantdetails for purposes of payment of the tax.
(b) the assessment group at POI shall cancel the OOC and indicate the reason inremarks. The BE shall be assessed again so as to charge the tax.
(c)  the  payment  of  tax  shall  be  made  against  the  electronic  challan  generated  inthe Customs EDI System.
(d) on completion of above payment, the port of import shall make a notional OOCfor  the  BE  on the  Customs  EDI  System  [so  as  to  enable  transmission  to  GSTN portal of, inter alia, the IGST amount with their date of payment (relevant date) foreligibility as per GST provisions].
(e) interest liability, if any, on account of payment of IGST shall stand waived off.
(f) the procedure specified at (a) to (d) above can be applied once to a BE.

4.The input credit with respect to such assessed BE shall be enabled to beavailable  subject  to  the eligibility  and  conditions  for  taking  input  tax  credit  underSection  16,  Section  17  and  Section 18  of  the  CGST  Act,  2017  and  rules  madethereunder.

5.Further, it is clarified that the payment of IGST should not be made throughthe Voluntary Payment Challan module as the process is not adequate to ensure aconvenient  transfer  of  relevant  details between  Customs  and  GSTN  so  that  InputTax Credit of GST may be taken by the importer.

6.The   Chief   Commissioners   are   expected   to   proactively   guide   theCommissioners  and officers  to  iron  out  any  local  level  issues  in  implementing  thebroad  procedure  described  in para  3  and  4  above  and  ensuring  appropriate convenience  to  the  trade  including  in  carrying out  consequential  actions.  For  this,suitable Public Notice and Standing Order should be issued.

Difficulties,  if  any,  in  the  implementation  of  the  above  Circular  may  be  brought  tothe notice of the Board.
Hindi version follows.

Yours faithfully,
(Parag Aggarwal)
OSD (Drawback)