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DGFT resolves concern related to redemption of AAS

Ingredients South Asia

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December 1-15, 2025

IN a significant relief for pharmaceutical exporters, the Directorate General of Foreign Trade (DGFT) has issued a clarification resolving a long-standing concern related to the redemption of Advance Authorisations (AAS) impacted by the erstwhile Rule 96(10) of the CGST Rules-2017.

This issue had persisted for years, creating compliance hurdles and delaying export obligation closures for several companies in the pharma sector, which heavily relies on duty-free imports of raw materials.

Since October 2017, many pharma exporters who imported critical inputs under the AA Scheme found themselves unable to obtain redemption or Export Obligation Discharge Certificates (EODCs). The bottleneck stemmed from the earlier version of Rule 96(10) of the CGST Rules, which restricted IGST refund eligibility for exporters (or their suppliers) who had availed specified duty exemptions.

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