EOU is like any other supplier under GST and all the provisions of the GST Law will apply. However, the benefit of Basic Customs Duty exemption on imports will continue.
(FAQ 10: EXPORTS)
What is deemed export under GST Law? Whether any supply has been categorized as deemed export by the Government
Deemed export has been defined under Section 2(39) of CGST Act, 2017 as supplies of goods as may be notified under section 147 of the said Act. Under section 147, the Government may, on the recommendations of the Council,
notify certain supplies of goods manufactured in India as deemed exports, where goods supplied do not leave India, and payment for such supplies is received either in Indian rupees or in convertible foreign exchange. However,
till date, the government has not notified any supply as deemed export.
(FAQ 9: EXPORTS)
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
Export of goods to Nepal or Bhutan fulfils the condition of GST Law regarding taking goods out of India. Hence, export of goods to Nepal and Bhutan will be
treated as zero orated and consequently will also qualify for all the benefits available to zero rated supplies under the GST regime. However, the definition of ‘export of services’ in the GST Law requires that the payment for such services should have been received by the supplier of services in convertible
foreign exchange.
( FAQ 9: EXPORTS)
How soon will refund in respect of export of goods or services be granted during the GST regime
(a) In case of refund of tax on inputs used in exports:
• Refund of 90% will be granted provisionally within seven days of acknowledgement of refund application.
• Remaining 10% will be paid within a maximum period of 60 days from the date of receipt of application complete in all respects.
• Interest @ 6% is payable if full refund is not granted within 60 days.
(b) In the case of refund of IGST paid on exports: Upon receipt of information regarding furnishing of valid return in Form GSTR-3 by the exporter from the common portal, the Customs shall process the claim for refund and an amount equal to the IGST paid in respect of each shipping bill shall be credited to the bank account of the exporter.
( FAQ 7: EXPORTS)
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
Supplies to SEZ unit or SEZ developer have been accorded
the status of inter-State supplies under the IGST Act.
Under the GST Law, any supplier making inter-State supplies
has to compulsorily get registered under GST. Thus anyone
making a supply to a SEZ unit or SEZ developer has to necessarily
obtain GST registration.
(FAQ 6: EXPORTS)
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
Yes, supplies made to an SEZ unit or a SEZ developer are zero rated. The supplies made to an SEZ unit or a SEZ developer can be made in the same manner as supplies made for export:
• either on payment of IGST under claim of refund;
• or under bond or LUT without payment of any IGST.
(FAQ 5: EXPORTS)
For merchant exporters, is there any change in the Export Procedure under the GST regime
The concept of merchant or manufacturer exporter would become irrelevant under the GST regime. The procedure in respect of the supplies made for export is same for both merchant exporter and a manufacturer exporter.
(FAQ 4: EXPORTS)
Have the procedures relating to exports by manufacturer exporters been simplified in GST regime
Yes. The procedures relating to export have been simplified so as to do away with the paper work and intervention of the department at various stages of export. The salient features of the scheme of export under GST regime are as follows:
• The goods and services can be exported either on payment of IGST which can be claimed as refund after the goods have been exported, or under bond or Letter of Undertaking (LUT) without payment of IGST.
• In case of goods and services exported under bond or LUT, the exporter can claim refund of accumulated ITC on account of export.
• In case of goods the shipping bill is the only document required to be filed with the Customs for making exports. Requirement of filing the ARE 1/ARE 2 has been done away with. •The supplies made for export are to be made under self-sealing and self-certification without any intervention of the departmental officer.
• The shipping bill filed with the Customs is treated as an application for refund of IGST and shall be deemed to have been filed after submission of export general manifest and furnishing of a valid return in Form GSTR- 3 by the applicant.
(FAQ 3: EXPORTS)
What will be the impact of GST on zero rating of export of goods
What will be the impact of GST on zero rating of export of good.
(FAQ 2: EXPORTS)
How are exports treated under the GST Law
Under the GST Law, export of goods or services has been treated as:
• inter-State supply and covered under the IGST Act.
• ‘zero rated supply’ i.e. the goods or services exported shall be relieved of GST levied upon them either at the input stage or at the final product stage.
( FAQ 1: EXPORTS)