ॐ असतो मा सद्गमय
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)
Yes. Duty Drawback scheme with certain modifications will continue under the GST regime. The changes in the said scheme are as follows:
• The Drawback shall be available only of Customs duties on imported inputs and Central Excise duty on items specified in the Fourth Schedule to the Central Excise Act 1944 (specified petroleum products, tobacco etc.) used as
inputs or fuel for captive power generation.
• As an export facilitation measure, for the transition period of 3 months, from July to September, 2017, Drawback at higher composite rates will continue to be granted subject to certain safeguards i.e. for claiming the higher rate of drawback, the exporter has to make a declaration and certificate is required 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.
• In absence of such certification, drawback will be restricted to the customs portion of drawback.
(FAQ 1: TRANSITION OF EXPORT PROMOTION SCHEME ON IMPLEMENTATION OF GST)
Yes. Since commission is received by agents in India, and the place of supply of service is in India, GST will be payable.
(FAQ 22: EXPORTS)
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)
Yes, an EOU can clear goods in DTA in accordance with the provisions laid in the Foreign Trade Policy.
(FAQ 20: EXPORTS)
There is no change except for the fact that if drawback is claimed by DTA supplier, the claim needs to be filed with the jurisdictional Customs Authorities.
(FAQ 19: EXPORTS)
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)
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)