{"id":784,"date":"2026-08-27T06:07:23","date_gmt":"2026-08-27T06:07:23","guid":{"rendered":"https:\/\/dgftexim.com\/blog\/?p=784"},"modified":"2026-08-27T06:07:24","modified_gmt":"2026-08-27T06:07:24","slug":"diamond-imprest-authorisation-igst-exemption","status":"publish","type":"post","link":"https:\/\/dgftexim.com\/blog\/diamond-imprest-authorisation-igst-exemption\/","title":{"rendered":"DGFT Amends Diamond Imprest Authorisation Rules: IGST Exemption Continues"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The <strong>Directorate General of Foreign Trade (DGFT)<\/strong> has issued <strong>Notification No. 32\/2026-27 dated 21 August 2026<\/strong>, amending <strong>Para 4.63 of the Foreign Trade Policy 2023<\/strong> with immediate effect.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">\u00b7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <strong>What Has Changed?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">DGFT has removed the reference to <strong>Compensation Cess exemption<\/strong> from the provisions relating to imports under the <strong>Diamond Imprest Authorisation<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This change has been made because Compensation Cess on such imports was already <a href=\"https:\/\/advanceauthorisation.in\/\"><strong>discontinued from 1 February 2026<\/strong><\/a>, based on the recommendation of the GST Council in its 56th meeting.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Therefore, this amendment is mainly a <strong>technical correction<\/strong> to align the Foreign Trade Policy with the current tax position.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"940\" height=\"470\" src=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/08\/image-67.png\" alt=\"Diamond Imprest Authorisation policy update infographic explaining the removal of the Compensation Cess exemption reference after the cess was discontinued on 1 February 2026.\" class=\"wp-image-785\" srcset=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/08\/image-67.png 940w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/08\/image-67-300x150.png 300w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/08\/image-67-768x384.png 768w\" sizes=\"auto, (max-width: 940px) 100vw, 940px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">\u00b7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Does the IGST Exemption Continue?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Yes.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The exemption from the whole of the applicable<a href=\"https:\/\/dgftexim.com\/\"><strong>Integrated Tax (IGST)<\/strong><\/a> under Section 3(7) of the Customs Tariff Act, 1975, continues for eligible imports under the <strong>Diamond Imprest Authorisation Scheme<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The notification does not introduce a new Compensation Cess liability and does not withdraw the existing IGST exemption.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"940\" height=\"470\" src=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/08\/image-68.png\" alt=\"Diamond Imprest Authorisation infographic confirming that the IGST exemption under Section 3(7) of the Customs Tariff Act, 1975 continues for eligible imports.\" class=\"wp-image-786\" srcset=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/08\/image-68.png 940w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/08\/image-68-300x150.png 300w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/08\/image-68-768x384.png 768w\" sizes=\"auto, (max-width: 940px) 100vw, 940px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">\u00b7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <strong>What Should Importers Do?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Eligible <a href=\"https:\/\/factorystuffing.com\/\"><strong>Diamond Imprest Authorisation holders<\/strong><\/a>should:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Use the revised <strong>Para 4.63<\/strong> in their compliance documents<\/li>\n\n\n\n<li>Inform their Customs Broker about the amendment<\/li>\n\n\n\n<li>Claim the applicable IGST exemption correctly<\/li>\n\n\n\n<li>Maintain valid authorisation and supporting records<\/li>\n\n\n\n<li>Continue complying with all DGFT and Customs conditions<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"940\" height=\"470\" src=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/08\/image-69.png\" alt=\"Checklist for Diamond Imprest Authorisation holders covering revised Para 4.63, Customs Broker notification, correct IGST exemption claim, valid records, and DGFT and Customs compliance.\" class=\"wp-image-787\" srcset=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/08\/image-69.png 940w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/08\/image-69-300x150.png 300w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/08\/image-69-768x384.png 768w\" sizes=\"auto, (max-width: 940px) 100vw, 940px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">\u00b7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <strong>Conclusion<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/dgftexim.com\/\"><strong>DGFT Diamond Imprest Authorisation amendment<\/strong><\/a> is a technical update and does not create a new tax burden. Compensation Cess was already discontinued from <strong>1 February 2026<\/strong>, while the <strong>IGST exemption continues<\/strong> for eligible imports under the scheme.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For the latest updates on <strong>DGFT, Customs and Import-Export regulations<\/strong>, follow <strong>DGFT EXIM Consultants<\/strong>.<\/p>\n\n\n\n<h1 class=\"wp-block-heading\"><strong>&nbsp;<\/strong><\/h1>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Directorate General of Foreign Trade (DGFT) has issued Notification No. 32\/2026-27 dated 21 August 2026, amending Para 4.63 of the Foreign Trade Policy 2023 with immediate effect. \u00b7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; What Has Changed? DGFT has removed the reference to Compensation Cess exemption from the provisions relating to imports under the Diamond Imprest Authorisation. This change has&hellip;<\/p>\n","protected":false},"author":1,"featured_media":788,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,57],"tags":[555,50,553,556,552,504,551,557,554],"class_list":["post-784","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-dgft-updates","category-daily-update","tag-customs-exemption","tag-dgft","tag-dgft-notification-32-2026-27","tag-diamond-import-policy","tag-diamond-imprest-authorisation","tag-foreign-trade-policy-2023","tag-igst-exemption","tag-import-export-update-2","tag-para-4-63"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Diamond Imprest Authorisation IGST Exemption Continues<\/title>\n<meta name=\"description\" content=\"Diamond Imprest Authorisation IGST Exemption continues after DGFT amended Para 4.63 of FTP 2023 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