{"id":1534,"date":"2017-08-28T06:46:13","date_gmt":"2017-08-28T06:46:13","guid":{"rendered":"https:\/\/swaritadvisors.com\/?p=1534"},"modified":"2020-12-17T18:30:43","modified_gmt":"2020-12-17T13:00:43","slug":"gst-on-import-and-export","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/gst-on-import-and-export\/","title":{"rendered":"GST on Import and Export Goods"},"content":{"rendered":"\n<p class=\"has-drop-cap\">GST is one of the faster-growing economy globally through which it is becoming a manufacturing hub. As the manufacturing activities are increasing we are witnessing expansion in foreign trade .i.e. <strong>GST on Import and Export Goods<\/strong>.<\/p>\n\n\n\n<p>The GST model has subsumed the Countervailing duty (CVD) and Special Additional Duty (SAD), however, the basic customs duty is kept outside the purview of GST and will be charged on the import bills<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a29c73d3748f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a29c73d3748f\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/gst-on-import-and-export\/#Impact_of_GST_on_Imports\" title=\"Impact of GST on Imports\">Impact of GST on Imports<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/gst-on-import-and-export\/#Import_will_be_treated_as_an_Interstate_supply\" title=\"Import will be treated as an Interstate supply\">Import will be treated as an Interstate supply<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/gst-on-import-and-export\/#Import_of_Services\" title=\"Import of Services\">Import of Services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/gst-on-import-and-export\/#Refund_of_tax_paid_on_import\" title=\"Refund of tax paid on import\">Refund of tax paid on import<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/gst-on-import-and-export\/#Withdrawal_of_Exemptions\" title=\"Withdrawal of Exemptions\">Withdrawal of Exemptions<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/gst-on-import-and-export\/#GST_on_Exports\" title=\"GST on Exports:&nbsp;\">GST on Exports:&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_of_GST_on_Imports\"><\/span>Impact of GST on Imports<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Import_will_be_treated_as_an_Interstate_supply\"><\/span>Import will be treated as an Interstate supply<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Import under <strong><a href=\"https:\/\/swaritadvisors.com\/gst-registration\" class=\"text-primary\">GST<\/a><\/strong> will be treated the same as the interstate supply of goods and services and the tax payable by them is Integrated Goods and Service Tax (IGST).<strong>&nbsp;<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Import_of_Services\"><\/span>Import of Services<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If any person provided any services from outside India to a person resident in India then the person residing in India .i.e. the service receiver is liable to pay GST under Reverse charge mechanism.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Refund_of_tax_paid_on_import\"><\/span>Refund of tax paid on import<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Under the GST model, tax paid during import will be available as a credit under the \u201c<strong>Import and Sale Model<\/strong>\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Withdrawal_of_Exemptions\"><\/span>Withdrawal of Exemptions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The current exemptions which were available related to customs import tariff which is loaded with multiple exemption notifications are possibly withdrawn or converted into refund mechanism. The exemption under IGST will not be exempted under the new law as which was previously available<\/p>\n\n\n\n<p>The <strong>export of goods<\/strong> or services is considered a <strong>zero-rated supply<\/strong>. GST will not be levied on exports<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_on_Exports\"><\/span>GST on Exports:<strong>&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A duty drawback facility was provided under the previous law for taxes paid on inputs for the export of exempted goods. The claim of duty drawback was a cumbersome process. However, <strong>under GST<\/strong>, the facility of duty drawback is only available for the customs duty paid on imported inputs or central excise paid on petroleum <strong>products or tobacco products<\/strong> used as input or for captive consumption.<br>A guidance note related to same has been released by the Indian government stating the options available to the exporter for claiming the refund paid on the inputs:<strong>&nbsp;<\/strong><\/p>\n\n\n\n<p><strong>Option 1:<\/strong> Supply the products or services underneath a bond or Letter of undertaking subject to such conditions as is prescribed without payment of taxes so as to claim the refund of an unutilized input tax credit. (The exporter has to file an application online or through facilitation Centre notified by the GST Commissioner. Kindly note that before filing the application for a refund a manifest or report by the exporter has to be filed under the customs act).<strong>\u00a0<\/strong><\/p>\n\n\n\n<p><strong>Option 2: <\/strong>The following persons are eligible to claim a refund if IGST has been paid by them:<\/p>\n\n\n\n<ul><li>An Exporter<\/li><li>United Nations<\/li><li>Embassy<\/li><li>Any other agencies as notified under section 55.<\/li><\/ul>\n\n\n\n<p>The exporter has to file the application as per the conditions specified under section 55. The exporter has to file a shipping bill for the goods being exported out of India. In such a case the shipping bill will be considered deemed an application for claiming a refund of GST paid. However, prior to this application, the person in charge of shipment has to file export manifest or report mentioning the export details.<\/p>\n\n\n\n<p>The following supply of goods and services would be treated as deemed exports under GST:<\/p>\n\n\n\n<ul><li>A supply made to SEZ unit\/developer<\/li><li>A supply made to an Export Oriented Unit<\/li><\/ul>\n\n\n\n<p>Thus with the introduction of GST, the import and export sector would be able to gain competitive advantage internationally due to benefit of refund of the taxes paid and claim of an input tax credit.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/cbic-waives-off-late-fees-for-gstr-4-gstr-10-returns\/\">CBIC Waives off Late Fees For GSTR-4 and GSTR-10<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>GST is one of the faster-growing economy globally through which it is becoming a manufacturing hub. As the manufacturing activities are increasing we are witnessing expansion in foreign trade .i.e. GST on Import and Export Goods. The GST model has subsumed the Countervailing duty (CVD) and Special Additional Duty (SAD), however, the basic customs duty [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1536,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[8],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/1534"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=1534"}],"version-history":[{"count":5,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/1534\/revisions"}],"predecessor-version":[{"id":17972,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/1534\/revisions\/17972"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/1536"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=1534"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=1534"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=1534"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}