GST on Export

FAQ’s on Export under GST

Question 1 : How are exports treated under the GST Law?

Question 2: What will be the impact of GST on zero rating of export of goods?

Question 3: Have the procedures relating to exports by manufacturer exporters been simplified in GST regime?

Question 4: For merchant exporters, is there any change in the Export Procedure under the GST regime?

Question 5: The supplies to a SEZ unit or SEZ developer are treated as zero rated supplies in the GST Law. Then why there is no specific mention in the GST Law about not charging of tax in respect of supplies from DTA unit to a SEZ unit or SEZ developer?

Question 6: When a SEZ unit or SEZ developer procures any goods or services from an unregistered supplier, whether the SEZ unit or SEZ developer needs to pay IGST under reverse charge or these will be zero rated supplies?

Question 7: How soon will refund in respect of export of goods or services be granted during the GST regime?

Question 8: Will export of goods to Nepal and Bhutan treated as zero rated and thereby qualify for all the benefits available to zero rated supplies under the GST regime?

Question 9: What is deemed export under GST Law? Whether any supply has been categorized as deemed export by the Government?

Question 10: Whether the EOU scheme will continue to be in operation in the GST regime and whether EOU is required to take registration under the GST Law?

Question 11: What tax benefits will be available to EOU scheme in GST regime?

Question 12: Whether supplies to or from EOU will be exempted from GST?

Question 13: What procedure will be followed by EOU to import goods without payment of Customs duty in the GST regime?

Question 14: Whether an EOU can clear goods to another EOU (inter-unit transfer)? And whether an EOU can send goods for carrying out job work on such goods? In such situations, how will be the tax liability be discharged?

Question 15: M/s XYZ is engaged in export of goods only having exports of approx. Rs. 5 crores and no clearances for home consumption are affected. M/s XYZ was not required to be registered under Central Excise. Whether M/s XYZ would be required to get itself registered under GST?

Question 16: We are engaged in the manufacture of exempted excisable goods for export. We availed input stage rebate used in the manufacture of exported goods. How would our case be dealt under GST law if our supply remains an exempt supply?

Question 17: We are merchant exporters dealing in various products.As per current procedure, we purchase goods from a particular factory against CT1/ARE1 so that no excise is levied on us. After goods are exported, we provide proof of export and Form H (for sales tax exemption) to the concerned factory. How would GST impact us and what will be the process now?

Question 18: I have stock of inputs, semi-finished goods and finished goods on the date on which GST comes into force. But I have no duty paying documents. How am I going to be compensated for the taxes paid on the said inputs, semi-finished goods, and finished goods before GST for the exports made after GST is implemented?

Question 19: I supply goods to SEZ units and developers. For such supplies, presently drawback is available to the recipient or to me (if recipient gives a disclaimer). What is status of such drawback under GST regime?

Question 20: Whether an EOU can clear goods in DTA?

Question 21: Will an exporter be required to pay GST in case of goods procured from unregistered persons (including unregistered job workers)?

Question 22: Is GST payable on Agency Commission earned by buying agents of foreign buyers?

Transition of Export Promotion Scheme on implementation of GST

Question 1: Will duty Drawback scheme continue under GST regime? If yes, what will be the rates of Drawback?

Question 2: Is Drawback at a higher All Industry Rate (AIR) admissible if an exporter has not availed Input Tax Credit of GST or refund of IGST paid on exported goods ?

Question 3: If an exporter has stock of GST paid inputs as well as inputs from pre GST period and if inputs from both lots are used in export goods, what shall be Drawback on such exports?

Question 4: Will brand rate of Drawback be admissible for Central Excise duty and Service Tax in respect of exports made prior to GST implementation, for which application is filed after 1st July 2017?

Question 5: Applications for fixation of brand rate used to be filed with jurisdictional Commissioner of Central Excise having jurisdiction over the factory where export goods were manufactured. Under GST regime, will there be any change regarding filing of application for fixation of brand rate?

Question 6: Is there also a change under the GST regime in respect of filing of application for fixation of brand rate of Drawback for supplies to SEZ units and SEZ Developers?

Question 7: On re-export of imported goods, drawback of all duties paid at the time of importation was admissible earlier, as per the rates prescribed in this regard. What will be the position in respect of re-export made after 1st July 2017, of the goods imported prior to 1st July 2017? After 1st July 2017, IGST and Compensation Cess will also be payable on the imported goods. If such imported goods on which IGST and Compensation Cess were paid, are re-exported, whether Drawback of IGST and Compensation Cess will also be granted?

Question 8: Under the GST regime, will benefit of exemption from all duties available under Advance authorization scheme, EPCG scheme and duty credit scrips such as Merchandise Exports from India Scheme (MEIS) & Service Exports from India Scheme (SEIS) will continue?

Question 9: Under GST regime, can we get duty free benefit (all duties exempted) if we import capital goods using EPCG authorization?

Question 10: Can duty credit scrips such as Merchandise Ex ports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) be used for payment of GST?

Question 11: What will be exemptions available for various au thorizations/scrips which have been issued prior to 1.7.2017 and remain unutilized on 1.7.2017?

Note: Reference to CGST Act, 2017 includes reference to SGST Act, 2017 and UTGST Act, 2017 also.

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