The refund of ITC credit is not admissible in view of the second proviso to section 54(3) of the CGST Act, 2017.
(FAQ 50: MINING)
Will an exporter be required to pay GST in case of goods procured from unregistered persons (including unregistered job workers)?
In case of supply by an unregistered person (including unregistered job workers), the registered person i.e., exporter shall be liable to pay GST under reverse charge mechanism.
However the exporter can avail ITC of such GST paid and either utilise the ITC or claim refund of the same.
(FAQ-21 :Exports)
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?
A transition period of three months has been provided for availing of drawback. For exports during this period, higher rate of duty drawback (composite AIR) shall be available subject to conditions that no ITC of CGST/IGST is claimed, no refund of IGST paid on export goods is claimed
and no CENVAT credit is carried forward.
(FAQ-18 : Exports)
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?
- Taxable event in the GST regime is supply of goods.
- Exports being inter-State supply, you would be required to obtain GST registration. The manufacturer would be supplying you the goods on the payment of IGST or CGST and SGST/ UTGST as applicable.
- You may avail of input stage credit of the tax paid on goods and services and export the goods under bond/LUT.
- Unutilized credit can be availed as refund.
- Alternatively, you may export the goods on payment of integrated tax and refund of integrated tax would be available to you.
(FAQ-17 : Exports)
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?
Under IGST law a person engaged in export of goods which is an exempt supply is eligible to avail input stage credit for zero rated supplies. Once goods are exported, refund of unutilized credit can be availed under Section
16(3)(a) of IGST Act, 2017 and Section 54 of the CGST Act, 2017 and the rules made thereunder.
(FAQ-16 : Exports)
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?
Yes, because exports have been treated as inter-State supplies under IGST Law.
(FAQ- 15 : Exports)
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?
Supply of goods from one EOU to another EOU will be treated as any other supply under GST Law. An EOU can send goods for job work as per section 143 of the CGST Act, 2017 and rule 45 of the CGST Rules, 2017 and the tax liability shall be discharged accordingly.
(FAQ-14 : Exports)
What procedure will be followed by EOU to import goods without payment of Customs duty in the GST regime?
To avail such import benefits, EOUs will have to follow the procedure under the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017.
(FAQ-13 : Exports)
Whether supplies to or from EOU will be exempted from GST?
No.
• Under the GST Law, IGST or CGST plus SGST will be payable by the suppliers who make supplies to the EOU. The EOU will be eligible to take Input Tax Credit of the said GST paid by its suppliers
(FAQ-12 : Exports)
What tax benefits will be available to EOU scheme in GST regime?
- The duty free imports under GST regime will be restricted to Basic Customs Duty. Exemption from the additional duties of Customs, if any, under section 3(1), 3(3) and 3(5) of the Customs Tariff Act, 1975 and exemption from
Central Excise duty will be available for goods specified under the fourth Schedule to the Central Excise Act. - IGST or CGST plus SGST will be payable by the suppliers who make supplies to the EOU.
- The EOU will be eligible, like any other registered person, to take Input Tax Credit of the said GST paid by its suppliers.
(FAQ-11 : Exports)