We have an export oriented unit (EOU) in Haryana. We want to store our finished goods at a godown near Ahmedabad and dispatch them through any of the ports in Gujarat or the Jawaharlal Nehru Port (JNPT) in Maharashtra whenever there is an export order. We want to use the facility to also make DTA (domestic tariff area) sales to our customers in Gujarat, and its neighbouring states. Are we allowed to do that?
Yes. In my view, you have two options — setting up an export warehouse and having an additional location for the EOU. Para 1.29 (e) of the foreign trade policy (FTP) says that “two-star and above export houses shall be permitted to establish export warehouses as per Department of Revenue (DOR) guidelines.” However, all the DOR guidelines appear to be the legacy Central Excise export-warehousing guidelines (detailed at notification 46/2001-CE(NT) dated June 26, 2001, CBEC Circular no.581/18/2001-CX dated June 29, 2001, besides other circulars and Chapter 10 of the Central Excise Manual). They remain workable for presently excisable goods, and still exist through Rules 16, 19 and 32 of Central Excise Rules, 2017. I would advise you to approach the Principal Commissioner at Ahmedabad for necessary approval. For the second option, Para 6.35 of the handbook of procedures (HBP) says that ‘the Board of Approval may permit inclusion of an additional location outside the territorial jurisdiction of the original Development Commissioner, subject to conditions it may decide’. Appendix-6N (applicable for approvals under Para 6.34 (g) of the HBP) gives you some idea of the conditions that may be stipulated in the approval letter.
In an export transaction, our goods are first moved to an inland container depot (ICD) or a container freight station (CFS), cleared by Customs there and subsequently transported by rail under Customs seal to a gateway seaport such as Nhava Sheva. What destination should be mentioned in the eway bill?
The eway bill covering movement from the exporter’s premises should mention the relevant ICD/CFS as the place of delivery, since Customs clearance takes place there. Subsequent movement of the Customs-cleared and sealed container from the ICD/CFS to Nhava Sheva Port under the prescribed Customs transhipment procedure does not require an eway bill, being covered by the exemptions under Rule 138(14)(h)(i) of the Central Goods and Services Tax (CGST) Rules, 2017.
We refer to the directorate general of foreign trade (DGFT) trade notice no.15/2026-27 dated August 5, 2026, stating that the regional authorities shall rely upon the voluntary duty payment details available on the DGFT portal, for payments made on or after August 1, 2026, for examination and processing of export obligation discharge certificate (EODC) applications. We understand that this means we need not submit copy of the challan we generate on the ICEGATE portal. Can we take input tax credit (ITC) of the differential IGST paid through such challans?
No, because under Rule 36(1) of the CGST Rules, 2017, the challan is not stipulated as a document based on which you can take ITC. This was held in Becton Dickinson, 2025 (32) Centax 248 (AAR–TN), and affirmed in 2025 (37) Centax 57 (AAAR–TN). Credit should be taken only against a reassessed bill of entry reflecting the differential IGST.
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