When a company is using Advance license to get import duty waiver, there's an export obligation for the company. At the time of export,the company needs to use primary, secondary and tertiary packing materials to ensure the FG goods reach the customer safely. The GST paid while procuring the materials can be claimed or passed on to the buyer if the buyer is in India, but now while exporting to a buyer in another country, the exporter is unable to claim the GST incurred on the packing materials since Advance license scheme is used while exporting.two scheme benefits cannot be claimed for a single transaction-this logic is used. RODTEP scheme can be allowed to claim refunds of tax incurred on packing materials while exporting of goods. Taxes shouldn't be expected is the common understanding, which makes the country's exporters uncompetitive.
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