GST Yathra- 14- Exports

Export of Goods

1. The goods and services can be exported

• Either on payment of IGST, which can be claimed as refund after the goods have been exported,

• Or under bond or Letter of Undertaking (LUT) without payment of IGST.

In the latter case, the accumulated input tax credit can be claimed as refund.

     2. Shipping bill alone is required to be filed with the customs authorities for making exports

     3. The Shipping bill shall be treated as an application for refund of IGST

     4. The Shipping bill shall be deemed to have been filed after submission of export general manifest and furnishing of a valid return in Form GSTR-3 by the applicant.

     5. The supplies made for exports  are to be made under self sealing and self- attestation.


Export of services ( Section 2(6) and Section 7 of IGST Act)

The following conditions need to be satisfied in order to qualify as Export of services

1. The supplier of service is located in India
2. The place of supply is outside India
3. Recipient of service is located outside India
4. Payment for such service has been received in convertible foreign exchange
5. Supplier of service and the recipient of service are not merely establishments of a distinct person as specified in Explanation 1 to Section 8.

GST Yathra- 13- IGST on Imports

Import of Goods:

As per Section 5(already discussed in GST Yathra -10) of the IGST Act, imported goods shall be deemed to be an inter-state supply.

IGST shall be levied on the value as determined under Customs Tariff Act, 1975.

Point of levy of IGST shall be point of  levy of customs duty under the Customs Act, 1962.

The rate of IGST shall be a rate of IGST leviable on supply of similar article in India.

It shall be levied in addition to Basic Customs Duty.

Assessable value = 10

BCD=10%

IGST=20%

Then,

BCD=1

AV+BCD= 11

IGST= 11 x 20% = 2.2

Import of Services

The following three conditions have to be satisfied for a supply of service in order to qualify as Import of service

a.       Supplier of service should be located outside India

b.      Recipient of service should be in India

c.       The place of service should be in India.

The place of supply shall be determined as per Section 13 of the IGST Act.

Impact of consideration and business connection  on the supply of service

As discussed earlier (GST Yathra -2),

If the import of service is for consideration, it is not necessary the supply should be for business purpose in order to qualify as supply.

If the supply of service is from a related or distinct person as defined in Section 25 of the CGST  Act, it is not necessary that the supply should be for consideration in order to qualify as supply.