gst export and import impact

EXPORT AND IMPORT PROVISION IN GSTBy

CA LGopal ShahBhubaneswar

Email: ca.lgshah@gmail.comM- 9437124361

EXPORT PROVISIONS IN GST

2

• Export of Goods means “taking goods out of India to a place outside India.”

• Receipt of Foreign currency is not criteria for export of goods

• Present ARE forms (A document submitted to customs authorities by exporters

verifying that shipping bills are accurate and complete). – May not be required.

• However for Export on payment of GST, such forms would be required.

• Export of goods are categorized under Zero rated Supplies.

EXPORT OF GOODS

“Export of services” under GST means the supply of any service when-

Supplier located in India

Recipient located outside India

Place of supply of service is outside India

Payment is received by the supplier of service in convertible foreign

exchange

Supplier of service and recipient of service are not merely establishments

of a distinct person in terms of explanation to levy section

All the above mentioned conditions should be satisfied cumulatively.

EXPORT OF SERVICES

Exports shall be treated as zero-rated supply.

Zero rated supply means a supply of any goods and/or services on

which no tax is payable but credit of the input tax related to that

supply is admissible.

WHETHER EXPORTS ARE TAXABLE???

Refund under 2 options –

Export goods or services under

bond – without payment of IGST

and refund of unutilized credit.

Export on payment of IGST and

claim refund of IGST paid

REFUND OF UNUTILISED CREDIT

POS – Location outside India

Export turnover shall be included in aggregate turnover.

No refund of unutilized credit – If goods exported are subject to

export duty.

OTHER ASPECTS

IMPORT PROVISIONS IN GST

www.hiregange.com 8

Import of Goods means “bringing goods into India from

a place outside India”.

Import starts when goods cross the customs barrier in a

foreign country and ends when they cross customs barrier

in the importing country, India

IMPORT OF GOODS

‘‘Import of services” means the supply of any service, where––

the supplier of service is located outside India;

the recipient of service is located in India; and

the place of supply of service is in India.

All the above mentioned conditions should be satisfied cumulatively.

Supply of services imported into the territory of India shall be treated to be a

supply of services in the course of inter-State trade or commerce.

Liability of payment of tax is on the Recipient of service. The tax paid is eligible

as credit.

IMPORT OF SERVICES

Imports into India will be considered as Inter-State supply

IGST will attract. Along with BCD and other surcharges.

Valuation- IGST is levied on Transactional Value on Import of goods.

POS- Location of importer

Transactional value includes taxes, duties, fees and charges levied under

any other statute i.e BCD will added to transactional value of imports.

Incase of Import and Sale – IGST is admissible as Credit.

IMPORT OF GOODS/SERVICES

ANY QUERIES???

For any clarificationCA LGopal Shah

BhubaneswarEmail: ca.lgshah@gmail.com

M- 9437124361