Category: GST

No, there is no such provision in GST. Tax will be payable on their inward supplies and they can claim refund of the accumulated ITC.

(FAQ 9: HANDICRAFTS)

The principle of unjust enrichment is not applicable in case of exports of goods or services as the recipient is located outside the taxable territory.

(FAQ 8: HANDICRAFTS)

Refundable amount shall be sanctioned within 60 days from the date of receipt of application complete in all respects. However, as a measure of
facilitation to exporters, except for certain notified categories, ninety per cent of the amount excluding the amount of input tax credit provisionally accepted will be refunded provisionally within seven days from the date of acknowledgement.

(FAQ 7: HANDICRAFTS)

Refund can be claimed by filing an application electronically in prescribed form along with required documents through the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner. The refundable amount shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars and as specified in the application for refund.For details Chapter X of the CGST Rules, 2017 relating to refund may be referred to.

In case of refund of IGST, the shipping bill filed with the Customs is treated as an application for refund if the exporter has filed a valid return in Form GSTR-3/3B and the person in-charge of the conveyance carrying the goods to be exported has furnished an export manifest/report. Upon receipt of information regarding furnishing of a valid return in FORM GSTR-3 or FORM GSTR-3B by the exporter from the Common Portal, the Customs authorities at the port of export shall process the claim for refund and an amount equal to the integrated tax paid in respect of each shipping bill shall be electronically credited to the bank account of the exporter.

(FAQ 6: HANDICRAFTS)

Yes. Section 54(3) of the CGST Act, 2017 provides for refund of any unutilised input tax credit of inputs and input services at the end of any tax period except where:
(i) the goods exported out of India are subjected to export duty; or
(ii) the exporter claims drawback of CGST or refund of IGST paid on such export.

(FAQ 5: HANDICRAFTS)

Provisions relating to refund are contained in section 54 of the CGST Act, 2017. It provides for refund of tax paid on zero-rated supplies of goods or services or on inputs or input services used in making such zero rated supplies, or refund of tax on the supply of goods regarded as deemed exports, or refund of unutilized input tax credit. Identical provisions exist under the IGST Act, 2017 and relevant SGST/UTGST Acts.

(FAQ 4: HANDICRAFTS)

The IGST can be paid by utilizing ITC to the extent available and balance by cash. The use of ITC for payment of IGST will be done in the following order:
• ITC of IGST shall be used for payment of IGST first;
• Once ITC of IGST is exhausted, the ITC of CGST shall be used;
• If ITC of both IGST and CGST are exhausted, ITC of SGST shall be used.
– Remaining IGST liability shall be discharged in cash. GST System will ensure maintenance of this hierarchy for payment of IGST using the credit.
• However, IGST on imports has to be paid in cash only.

(FAQ 3: HANDICRAFTS)

All exports will be deemed as inter-State supplies. Exports of goods and services will be treated as zero rated supplies. The exporter has the option either to export under bond/Letter of Undertaking without payment of tax and claim refund of ITC or pay IGST by utilizing ITC or in cash at the time of export and claim refund of IGST paid.

(FAQ 2: HANDICRAFTS)

All imports will be deemed as inter-State supplies for the purposes of levy of GST. IGST is leviable on imports in addition to other duties of customs. Full set-off will be available as ITC of the IGST paid on import on goods and services.

(FAQ 1: HANDICRAFTS)