7 May 2018, 14:41 — 7 min read
GST has made a difference to all aspects of business across the length and breadth of the country. But what about those Indian businesses that are involved with trade internationally? Importing and exporting will also be a bit different under GST and here is a quick guide to see how it affects your business.
There are certain positives for the export sector across the board. They are:
Transitioning to the new regime also brings with it certain rules which could have bearing on your business if you are involved in exporting. The main features of transitional provisions are:
Definition of exports
Exports of goods means taking goods out of India to a place outside India. Export of supply means supply of service when supplier of services is located in India, the recipient of services is located outside India. The place of supply of service is outside India, the payment for such service is received in convertible foreign exchange and the supplier and recipient of services are distinct persons.
Refund of exports
If you are looking for refunds for exports then you have to note that:
For a ‘fast refund’ for export, acknowledgement for refund for exports to be issued within 3 days. 90% of the refund amount will be granted provisionally within 7 days. The balance 10% will be reimbursed after due verification of documents within 60 days. Cases delayed beyond 60 days to will get interest at the notified rate, not exceeding 6%, till the date of refund. Cases decided by Appellate or Adjudicating authority or Court will get interest at the notified rate not exceeding 9%, reckoned from the 60 days till the date of refund.
Eligibility for Provisional Refund:
Here are the steps you will be required to undertake to avail of refunds for goods and services exports:
Job work is a key component of import and export for goods. Under GST, Job Work relating to exports will have special provisions under the new tax law. The new provisions are explained below:
The Principal (Exporter) may send inputs or capital goods, without payment of tax, for job work. The intimation letter to contain description of input to be sent and nature of processing to be carried by job worker. The intimation to be submitted to the jurisdiction officer by email or physical copy of letter. The exporter may retain the credit availed by him on the inputs/capital goods sent to job worker. The job worker after processing can send the goods to another job worker or send to any place of business of the exporter or exports outside India without payment of tax. Value addition will be subject to GST to enable job worker to claim ITC. Inputs to be brought back after completion of job work within one year (3 years for capital goods). Otherwise the credit will be be reversed by the Exporter.
Other miscellaneous points to note about the impact of GST to export:
This article is written by Dr. Ajay Sahai, Director General and CEO of FIEO
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Posted byFederation of Indian Export Organisations
FIEO is the apex international trade promotion organisation of India. Directly and indirectly it represents the interest of over 200,000 exporters in India. FIEO has 17 offices in...