Category: Exports

No exemption under GST Law is provided. The EXIM scrips under the export incentive schemes of chapter 3 of FTP (for example MEIS and SEIS) can be utilised only for payment of Customs duties or additional duties of Customs, on items not covered by GST, at the time of import. The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess. Similarly, scrips cannot be used for payment of CGST, SGST or IGST for domestic procurements.

(FAQ 11: TRANSITION OF EXPORT PROMOTION SCHEME ON IMPLEMENTATION OF GST)

No. MEIS and SEIS scrip can be used only for payment of Basic Customs Duty or additional duties of Customs on items not covered under GST for imports under GST regime.

(FAQ 10: TRANSITION OF EXPORT PROMOTION SCHEME ON IMPLEMENTATION OF GST)

Only basic customs duty will be exempted on imports made under EPCG Authorization. The EPCG holder will have to pay IGST on import of capital goods and take Input Tax Credit.

(FAQ 9: TRANSITION OF EXPORT PROMOTION SCHEME ON IMPLEMENTATION OF GST)

After 1st July 2017, the benefits under all the said schemes shall be restricted only to Basic Customs Duty, Safeguard Duty, Transitional Product Specific Safeguard Duty and Anti-dumping Duty in respect of goods leviable to IGST. For items specified in the Fourth Schedule to the Central Excise Act, 1944 (specified petroleum products, tobacco etc.) exemption from Additional Duty leviable under Sections 3(1), 3(3) and 3(5) of the Customs Tariff Act, 1975 shall be available.

(FAQ 8: TRANSITION OF EXPORT PROMOTION SCHEME ON IMPLEMENTATION OF GST)

Drawback under Section 74 of the Customs Act, 1962 is available for duties paid at the time of importation. Therefore, whatever duties / taxes are paid at the time of importation of goods, Drawback of the same will be granted. Drawback of Basic Customs Duty plus Additional Duty of Customs (CVD) plus Special Additional Duty (SAD) paid on the goods imported prior to 1st July 2017 will be paid even if the re-export is made after 1st July 2017. Similarly,
in respect of the goods imported after 1st July 2017, Basic Customs Duty plus IGST plus Compensation Cess will be paid and Drawback of all of these would be paid on re-export of such imported goods.

(FAQ 7: TRANSITION OF EXPORT PROMOTION SCHEME ON IMPLEMENTATION OF GST)

Prior to 1st July 2017, applications for fixation of brand rate for supplies to SEZ units and SEZ Developers used to be filed with the jurisdictional Commissioner of Central Excise. With effect from 1st July 2017, applications for fixation of brand rate will be required to be filed with the Commissioner of Customs having jurisdiction over the principal place of business of the DTA supplier. This shall be applicable even for exports made prior to 1st July 2017 for which application for fixation of brand rate is yet to be filed.

(FAQ 6: TRANSITION OF EXPORT PROMOTION SCHEME ON IMPLEMENTATION OF GST)

With effect from 1st July 2017, applications for fixation of brand rate shall be filed with the Commissioner of Customs having jurisdiction over place of export of goods i.e the port/Airport/ICD etc. where Shipping Bill was filed. This
shall be applicable even for exports made prior to 1st July 2017 for which application is yet to be filed. In case exports are from multiple places, application shall be filed with the Commissioner of Customs having jurisdiction over any one of the places of export of goods.

(FAQ 5: TRANSITION OF EXPORT PROMOTION SCHEME ON IMPLEMENTATION OF GST)

For the exports made prior to 1st July 2017, application for fixation of brand rate as per the Drawback scheme under the earlier law (defined as ‘existing law’ in section 2(48) of the CGST Act, 2017) can be filed even after 1st July 2017.

(FAQ 4: TRANSITION OF EXPORT PROMOTION SCHEME ON IMPLEMENTATION OF GST)

During the transition period upto 30th September 2017, exporters can avail drawback at higher rate subject to the conditions that no Input Tax Credit (ITC) of CGST/IGST is claimed, no refund of IGST paid on export goods is claimed and no CENVAT credit is carried forward.

(FAQ 3: TRANSITION OF EXPORT PROMOTION SCHEME ON IMPLEMENTATION OF GST)

No. After 30th September 2017, drawback will be admissible only at lower rate determined on the basis of the custom duties paid on the goods imported for supplying goods for export.

(FAQ 2: TRANSITION OF EXPORT PROMOTION SCHEME ON IMPLEMENTATION OF GST)