Raw sugar imported under Advance Authorisation and moved to TRQ: IGST to be paid on a reassessed Bill of Entry, interest waived

Why this circular

DGFT’s Notification 31/2026-27 and Public Notice 27/2026-27, both of 20 August 2026, amended the import policy condition for raw sugar (Exim code 170114) and allowed a one-time conversion from the Advance Authorisation (AA) Scheme to the Tariff Rate Quota (TRQ) Scheme. The Board examined how IGST is to be paid on raw sugar actually imported under AA.

The procedure at the port of import

1. The AA holder who has to pay IGST approaches the assessment group at the port of import with the details.
2. The assessment group cancels the out-of-charge, records the reason, and assesses the Bill of Entry again to charge the tax.
3. The tax is paid against the electronic challan generated in the Customs EDI System.
4. The port makes a notional out-of-charge, so that the IGST amount and the date of payment are transmitted to the GSTN portal.

This procedure can be applied once to a Bill of Entry. Interest liability, if any, on account of the payment of IGST stands waived.

Input tax credit

Credit on the reassessed Bill of Entry will be enabled, subject to the eligibility and conditions of sections 16, 17 and 18 of the CGST Act, 2017. The circular says payment should not be made through the Voluntary Payment Challan module, because that route does not carry the details between Customs and GSTN for the credit to be taken.