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

Last updated: 28 August 2026

Save Share

Quick Summary

The Central Board of Indirect Taxes and Customs (CBIC) has issued new guidelines for paying Integrated Goods and Services Tax (IGST) on raw sugar imported under an Advance Authorisation (AA) scheme that is being converted to a Tariff Rate Quota (TRQ) scheme. Importers will now follow a specific procedure at the port of import to pay IGST, which will be assessed via the Customs EDI System. Importantly, any interest liability on this IGST payment will be waived, and input tax credit eligibility will be maintained under the CGST Act.

Government of IndiaMinistry of Finance: Department of RevenueCentral Board of Indirect Taxes and CustomsDrawback 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 i

Daily Limit Reached

You have reached your daily limit of 2 Free Notice & Circular

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Notice & Circular Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

BEST VALUE

2 Years PLAN

3499

(Excl. of GST ₹629)

3 Months PLAN

999

(Excl. of GST ₹179)

View all CCI PRO benfits

Already a PRO member? Login here for an ad-free experience.

FAQ :

This notification clarifies the procedure for paying IGST on raw sugar imported under the Advance Authorisation (AA) scheme that is being converted to the Tariff Rate Quota (TRQ) scheme.

AA holders must approach the concerned assessment group at the port of import with relevant details. The Bill of Entry (BE) will be reassessed to charge the tax, which is to be paid via an electronic challan generated in the Customs EDI System. A notional Out of Charge (OOC) will then be made on the system.

No, any interest liability on account of the payment of IGST under this procedure will be waived off.

Input tax credit will be available subject to the eligibility and conditions outlined in Sections 16, 17, and 18 of the CGST Act, 2017, and its rules, after the IGST is assessed and paid.

No, the IGST payment should not be made through the Voluntary Payment Challan module as it is not adequate for ensuring convenient transfer of details between Customs and GSTN for input tax credit.

The specified procedure can be applied only once to a Bill of Entry (BE).