Affect of GST on Export of Goods
Currently, the government is trying to increase the quantity and quality of exports from India. As seen in its “Make in India” policy and the tax benefits it provides exporters. The GST commenced on July 1 and it is still vague about the impact of this new regime on exporters. Traders want to know how GST will affect the products exported, and how much tax will be paid on raw materials or inputs. The Indian government released a set of notifications and guidance notes regarding the CGST, SGST, UTGST, as well as the rates of cess and GST on 28th June 2017.
Duty Drawback for Taxes Paid on Inputs
Prior to the 2010 law, the government offered a duty drawback for taxes paid on inputs for the export of exempted goods. In other words, the process of claiming the duty drawback was cumbersome. To clarify, in the GST system, duty drawbacks would only cover import duties on inputs or excise. Also, it applies to certain petroleum or tobacco products used as inputs or fuel for captive power generation. Furthermore, in relation to the reimbursement of tax paid by exporters on inputs, there was some confusion. However, this topic was the subject of a government guidance note. On the other hand, it helped clear up any doubts about claims for input tax credits on zero-rated exports. An exporter of zero-rated supplies can claim a GST refund based on the following options:
Above all, provide goods or services, under bond or letter of undertaking. Certainly, and subject to such conditions, safeguards, and procedures. Further, as prescribed without paying integrated tax. Moreover, then claim a refund of the unutilized input tax credit.
In addition, it shall be lawful for exporters or United Nations, embassies, or other agencies or bodies. As specified in section 55, to supply goods or services, when certain safeguards and procedures. Meanwhile, we have been met and a person paying an IGST can claim a refund of such tax paid on supplied goods or services. However, the applicant must follow the rules outlined under section 54 of the CGST Act for such a refund.
A revised shipping bill form is available on the department’s website for both electronic and manual shipping. Subsequently, it includes GSTIN and IGST. We are also in the process of relaxing the factory stuffing procedure and necessary permissions, in order to boost exports under GST.
Benefits of Deemed Exports Under GST
GST would apply to the following supplies:
- An Advance Authorization is needed for the sale of goods by a registered person.
- Supply to an export-oriented undertaking (EOU) or a unit of a hardware technology park, software technology park, or biotechnology park.
- Obtaining an Export Promotion Capital Goods Authorization in order to supply capital goods.
- Banks and Public Sector Undertakings must obtain Advance Authorization in order to supply gold.
In order to file returns under GST for the deemed export, you must follow the general procedures for GST exports.
Documents Required for Claiming Refund on Exports
Here is a list of documents needed to claim a refund –
- Firstly, proof of payment of duty in the form of a copy of the return
- Secondly, a copy of the invoice
- Thirdly, documentation proving that the tax burden hasn’t been passed on (CA certification or self-certification)
- Further, the government may require any other document.
Due to the smooth process of claiming input tax credits and the availability of input tax credits on services. India’s export industry will be able to offer internationally competitive prices.
To Know More
- Import/Export, cargo mode: Air, sea, and by land.
- Routine shipment, home consumption (duties paid)
- Ex-Bond/In-Bond shipment
- Shipments of DEPB, EPCG, and DFCEC licenses
- 100% EOU / STPI / SEZ / TP for ship spares / R&D certification / passbook scheme
- Import clearance for a project
- Direct deliver perishables and certain cargo
- Re-import after repairs / exhibition
- Clearance of third-country exports
- ATA carnet clearance
- Second-hand capital goods
- Free-of-charges shipments
- Courier clearance
- Door to door delivery
There are certain certificates that you must obtain from the concerned departments regarding the following items:
- Registration From Food Safety and Standards Authority of India (FSSAI) (For Food/Edible Import Consignments)
- Animal Quarantine Certificate (A&Q) Required import in india (For animal, animal parts, animal feed, etc. )
- Plant and Protection Quarantine Certificate/ import permit plus Fumigation treatment Certificate are required for the import of plant material (For seeds, plant and plant thereof)
- Drug & Cosmetics Act, 1940, No-objection Certificate (NOC) from Assistant Drug Controller(ADC) (is mandatory for the import of drugs/bulk drugs, etc.)
- BIS, Bureau of Indian Standards BIS is responsible for the harmonious development of the activities of standardization, marking and quality certification of goods and for matters connected therewith or incidental thereto
- EPR, Extended Producer’s Responsibility With EPR India authorization, the manufacturer / importer of electronic and electrical products has been given the responsibility to control E-waste by the products after expiry of their lifetime.
- WPC, Wireless Planning & Coordination Imports of radio equipment into India, without prior permission from WPC, will be confiscated by Customs at point of entry.
- LMPC, Legal Metrology & Packaged Commodity Registration For import of any pre-packed commodities commodity to distribute or sell Then he need to apply for packer / manufacturer registration
Legal, Standard and Specific Documents Required
- Commercial Invoice
- Packing list
- KYC Documents Required by The CHA for Custom Clearance.
- GST (LUT)/ IGST declaration
- Export License (If required)
- AD Code on (Bank Letter Head)
- MSME Certificate (If required)
- RCMC/EPC Certificate (If required)
- AA (DEEC)/ DFIA/ EPCG/ EOU License For Export Benefits (incentive) (As an option the Exporter may Choose)
- Any other Documents required to in this Consignment.
Certificates From The Concerned Departments
In relation to the following items you will need to obtain certain certificates from the concern department, which we have provided you below :
- Registration From Food Safety and Standards Authority of India (FSSAI) (For Food/Edible Import Consignments) (if required)
- Plant and Protection Quarantine Certificate/ import permit plus Fumigation treatment Certificate are required for the import of plant material (For seeds, plant and plant thereof) (if required)
- Animal Quarantine Certificate (A&Q) Required import in india (For animal, animal parts, animal feed, etc. ) (if required)
- CDRUG – ADC Assistant Drug Controller(ADC) (is mandatory for the import of drugs/bulk drugs, etc.) (if required)
- SCOMET – Special Chemical organism, material Equipment, Technology.
- PSI – Pre Shipments Inspection. (if required)
- Certificate of origin.
- APEDA – Agriculture and processed food products Export development authority.
- FUMIGATION (if required)
- WILD LIFE (if required)