The EPCG Indian Purchase facility is a unique feature of the Export Promotion Capital Goods (EPCG) Scheme. The Export Promotion Capital Goods (EPCG) Scheme is an important initiative under the Foreign Trade Policy (FTP) of India that promotes exports by allowing the import or domestic procurement of capital goods at zero customs duty.
While most exporters use the scheme to import machinery, many Indian manufacturers prefer to purchase machinery from domestic suppliers. This route is known as EPCG – Indian Purchase, and it provides the same benefits as direct import — but through local sourcing.
At BEST EXIM and Industrial Services, we offer complete professional support for companies availing EPCG benefits for Indian Purchase, ensuring correct documentation, DGFT approval, and GST refund compliance.
Under the EPCG scheme, exporters can purchase capital goods manufactured within India without paying customs duty, as long as they commit to an export obligation.
The domestic machinery supplier is treated as a deemed exporter, and the EPCG authorization holder gets the same benefits as an importer under the scheme.
This provision supports the Make in India initiative by encouraging industries to buy modern machinery from Indian manufacturers rather than importing it from abroad.
For a domestic machinery purchaser, the EPCG Scheme offers several major advantages:
In the EPCG Indian Purchase route, the local supplier charges GST at the time of sale.
However, since the supply qualifies as “deemed export”, the supplier can claim a refund of the GST paid to the government after fulfilling the required documentation.
This ensures that the EPCG authorization holder does not bear the burden of GST, keeping the cost structure neutral — just like a duty-free import.
Additionally, exporters using capital goods purchased under EPCG can claim IGST refunds on exports of goods or services made using that machinery, as per GST provisions and DGFT guidelines.
Our experts handle everything from application filing, documentation, and DGFT liaison to GST refund coordination and export obligation closure.
We make sure you get all EPCG benefits for Indian Purchase without compliance errors or delays.
The EPCG Indian Purchase Scheme is the best solution for exporters who want to upgrade their technology through domestic machinery while saving on customs duty and GST.
