IGST exemption Imports - Does it require GST Council recommendation?

Sir, Excellent article indeed. I really appreciate the author for his inclination and his efforts towards sharing of knowledge through various modes. Coming to the subject issue, I agree that recommendation of exemption of IGST on imported goods is not within the domain of GSTC though IGST on domestic supplies is to be recommended by GSTC. Even though Sec 17 of IGSTA provides for distribution of IGST paid on imported goods also to States and therefore any exemption given would impact States revenue also. I have a doubt: Had the proviso to Sec 5 of IGST was not there what would have been the implication? I think levy of IGST on imported goods is in terms of Sec 3(7) of CTA and it does not require authorisation from proviso to Sec 5 of IGSTA. For clarity i add that CVD is the one which is levied under Section 9 of CTA. Duty levied under Sec 3(1) is the Addl Duty of Customs which is being called as CVD colloquially . Now Sec 3(1) of CTA is to levy ADC on non GST goods and IGST is levied under Sec 3(7) of CTA..... regards... Mallikarjun Reddy

CESTAT Hyderabad 29/05/2021