GST Exemption For Students On Import Duties

Is there any GST exemption for students on import duties, especially if working the student on a project on Electric Vehicle? Is there any scheme available?

Answer (1)

Mohim Roy

  • Sector-1, Noida

Under sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary for the public interest so to do, hereby exempts equipment, instruments, raw materials, components, pilot plant and computer software (hereinafter referred to as the said goods) and falling within the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India, from the whole of the duty of customs leviable thereon which specified in the said First Schedule and from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, when imported for any Research and Development Project (hereinafter referred to as the said project) undertaken by any company, subject to the following conditions, namely: -

(a) the said project is undertaken by any company having an in-house Research and Development unit recognised by the Department of Scientific and Industrial Research under the Ministry of Science and Technology;

(b) the said project is funded by the Government of India in a Ministry or Department, as the case may be, and the share of such Ministry or Department is not less than twenty per cent, of the total cost of the said project;

(c) a certificate from an officer not below the rank of a Deputy Secretary to the Government of India in the Concerned Ministry or Department, as the case may be, funding the said project is produced to the Assistant Commissioner of Customs, in each case, at the time of importation, indicating -

(i) the total cost of the project;

(ii) the cost of the project shared by such Ministry or Department, as the case may be;

(iii) the value of the goods already imported under this notification;

iv) that the goods are imported for the purposes of the said project; (

d) the goods shall not be sold or transferred to any person or other organisation for a period of five years from the date of their import;

Provided that the exemption under this notification shall be available to the said goods only up to a value equivalent to the cost of the said project shared by the Concerned Ministry or Department.

Answered on 15 Oct 2019


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