The Central Board of Indirect Taxes and Customs (CBIC), on August 27, 2026, has prescribed the procedure for payment of IGST on Raw Sugar actually imported under the Advance Authorisation (AA) Scheme and subsequently converted into the Tariff Rate Quota (TRQ) Scheme.
The following has been stated:
For relevant imports where the AA holder is required to pay IGST, the importer may approach the concerned assessment group at the Port of Import (POI). The assessment group will cancel the Out of Charge (OOC), reassess the Bill of Entry to charge the tax, and the IGST must be paid through the electronic challan generated in the Customs EDI System.
After payment, the POI will make a notional OOC to enable transmission of the IGST amount and payment date to GSTN. Any interest liability arising from the IGST payment will be waived, and this procedure may be applied only once for a Bill of Entry.
Input Tax Credit (ITC) on the assessed Bill of Entry will be available subject to the eligibility and conditions under Sections 16, 17, and 18 of the CGST Act, 2017. IGST payment should not be made through the Voluntary Payment Challan module, as it does not adequately facilitate transfer of the required details between Customs and GSTN.
Please refer to the document attached below for more details.
[Circular No.: 37/2026-Cus]
