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MEIS Scrip

Kaustubh Ram Karandikar (Corporate Consultant- Central Excise & Service Tax) (519 Points)

28 May 2020

XYZ had obtained MEIS licence and the same is used for payment of customs duty. In financials, they had considered it as income under head other revenues - Export Incentives. 1) Is ITC required to be reversed on it. 2) Is it required to be shown anywhere in GSTR – 1 or GSTR – 3B?

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3 Replies

CA Raj Doshi (Practising CA) (8924 Points)
Replied 28 May 2020

1. NO
2. NO

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Himanshi Garg (Ca Article) (354 Points)
Replied 28 May 2020

1.) MEIS Licences are freely transferable Duty Credit Scripts. They are exempted under GST vide Notification No. 35/2017 C.T. (Rate) dtd. 13.10.2017.
Therefore no GST is applicable on Sale or Purchase of such licences and thus, the question of Reversal of ITC does not arise as you have utilised the same for payment of Custom duty.
2.) You can show the Purchase of MEIS Licence in GSTR3B under the head of Exempted inward supplies with the amount paid on Purchase of such Licence. Regarding utilisation of such licence for payment of Custom duty, there is no need to show the same in GSTR1 or GSTR3B