The Supreme Court’s decision in the Cosmos Films matter had significant consequences for exporters who imported inputs under Advance Authorisation without satisfying the erstwhile pre-import condition. While the judgment settled an important legal question, it also created a practical one: what happens to the IGST and Compensation Cess that exporters may now need to pay?

CBIC subsequently issued a circular explaining the mechanism for re-credit or refund, but several operational and interpretational issues remained. This article breaks down the judgment, the circular and the practical implications for exporters — particularly those trying to understand their tax cost, ITC entitlement and refund position.

Read the full article on TaxGuru: Analysis of Circular on Pre-Import Condition in Light of Cosmos Films Supreme Court Decision