1. GST India 2017: Exporters need not pay IGST if bond furnished

GST India 2017: Exporters need not pay IGST if bond furnished

Exporters can furnish bond or letter of undertaking instead of paying Integrated GST at the time of exporting goods and services with effect from July 1.

By: | New Delhi | Published: July 3, 2017 10:09 PM
GST, IGST, IGST news, GST on exports, Customs circular, latest Customs circular on export procedure, latest export procedure, Customs circular on export procedure in the GST regime, IGST Act, Zero Rated Supply, unutilised input tax credit, IGST refund In case the IGST has been paid, the exporters can seek refund of the tax paid, according to a Customs circular on export procedure in the GST regime. (Reuters)

Exporters can furnish bond or letter of undertaking instead of paying Integrated GST at the time of exporting goods and services with effect from July 1. In case the IGST has been paid, the exporters can seek refund of the tax paid, according to a Customs circular on export procedure in the GST regime. IGST is levied on the supply of any goods and services in the course of inter-state trade or commerce. As per the IGST Act, export and import of goods and services are deemed to be a supply in the course of inter-state trade or commerce. “Supplies of goods and services for exports have been categorised as ‘Zero Rated Supply’ implying that goods could be exported under bond or Letter of Undertaking without payment of integrated tax followed by claim of refund of unutilised input tax credit or on payment of integrated tax with provision for refund of the tax paid,” it said.

For seeking IGST refund, an exporter will not be required to file any application as the shipping bill having IGST invoice details shall be deemed to be an application for refund of taxes paid. It further said that formats of shipping bill have been modified to make them complaint with the GST laws.

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The exporter claiming refund of unutilised input tax credit will file an application electronically through the GSTN. “The application for refund shall be filed on the GST Network portal after the goods or services is delivered. With regard to sealing of container at the time of export, the CBEC has decided to introduce the system of self- sealing. Earlier the sealing had to be done under the supervision of revenue officials.

“It is the endeavour of the Board to create a trust based environment where compliance in accordance with the extant laws is ensured by strengthening risk management system and Intelligence setup of the department. Accordingly, Board has decided to lay down a simplified procedure for stuffing and sealing of export goods in containers,” the circular said. The self-sealing procedure would be effective from September 1.

“A future date has been prescribed since the returns under GST have been permitted to be filed by September 10 and also with the purpose to give enough time to the stakeholders to adapt to the new procedures. “Therefore, as a measure of facilitation, the existing practice of sealing the container with a bottle seal under Central Excise supervision or otherwise would continue,” it said.

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    Anuj
    Jul 20, 2017 at 1:05 pm
    What is the effect of IGST on third party export from SEZ unit ? Example : ABC( merchant trader )purchase from XYZ ( SEZ unit ) directy export to 123 ( country ) . its not for in domestic market . Container loaded in side SEZ by XYZ and sealed . Third party shipping bill filled in SEZ custom only and same goes to port for export . Is IGST applicable here ? as per law IGST is applicable after Bill of entry . Bill of entry required for DTA s and above case is not a DTA s , it is direct export done by an Indian trader of goods purchased from SEZ unit or can say it is a third party export done by a SEZ unit . Kindly provide any circular regarding this if available .
    Reply
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      Amandeep Singh
      Jul 15, 2017 at 6:25 pm
      Dear Sir/ Maam, Does a merchant exporter having LUT have to pay IGST to procure material from a Local Manufacturer in India to Export The Goods. That is, will the Local Manufacturer charge IGST in his Invoice to the Merchant Exporter, even if the merchant exporter is having LUT and is going to take the material straight to the PORT for Export. If the Merchant Exporter has to pay IGST to the local manufacturer, then what is the procedure by which the Merchant Exporter van get the Refund of the IGST paid by him to the Local Manufacturer in India.
      Reply
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        Raksh Pal Abrol
        Jul 11, 2017 at 4:07 pm
        whether the Central Excise Tariff Act,1985 (5 of 1986) and Central Excise Act,1944 (1 of 1944) have been either amended or repealed after the introduction of GST Act,2017 (12 of 2017) and IGST Act,2017(13 of 2017).It is not yet clear and also the job-work carried out under Notification No. 214/86-C.E. dated 5th March 1986 and Notification No. 83/94-C.E. 84/94-C.E both dated 11th April 1994.The word 'Manufacturer is not defined under Customs Tariff of India,1975. as amended. We understand that Central Tax has thrown out all the taxes imposed by any state in the country on and purchase of Goods and Services.If so please do not affect any Expots
        Reply
        1. H
          harmeet
          Jul 10, 2017 at 1:44 pm
          i purchase my machine before july 1. now i am going to export it.and i already paid excise and vat on it, whether i should pay igst now or have to give undertaking or i cann send the machine without doing any thing
          Reply
          1. S
            saket shah
            Jul 7, 2017 at 6:07 pm
            I am a merchant Exporter. DO I first need to pay IGST and then get back the credit or is there any way through which we dont need to pay taxes as it is for export only.
            Reply
            1. Z
              Zain Jawadwala
              Jul 6, 2017 at 4:12 pm
              If an exporter is self sealing the container at his factory premises without examination and report by a central excise officer, who will examine the goods ? Can you please assist ?
              Reply
              1. S
                sheela
                Jul 6, 2017 at 2:43 pm
                We are an exporter company supplying through international funded tenders in Africa.We import lot of equipment and keep in custom bonded warehouse and then de-bonding is done and it is exported. We need to inform that those imported products will not be used in India. It will be shipped to Africa based on the client LC terms. Now we came to know that we need to pay IGST which will be huge amounts for each imported goods. Kindly advice in this matter.
                Reply
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                  BALA S
                  Jul 7, 2017 at 12:52 pm
                  IF THE GOODS ARE CLEARED UNDER BOND (AGAINST RE- EXPORT BOND) , THE I G S T MAY NOT REQUIRED TO BE PAID AND L.U.T MAY BE EXECUTED FURTHER IF NEED SO AS PER GST / IGST FOR EXPORTS. IS THIS IMPORT TAKEN PLACE AT SEA PORT / DRY PORT. BALA S
                  Reply
                2. S
                  Shaibul Hoque Mozumder
                  Jul 5, 2017 at 7:17 pm
                  What is the procedure of good to SEZ ,‘Zero Rated Supply’ ?
                  Reply
                  1. S
                    Sudhagar
                    Jul 5, 2017 at 1:16 pm
                    1) Exports of goods on payment of IGST and file refund.... it means 100Pct of IGST paid has been granted to refund ?? 2) If exports of goods under Bond / LUT to be furnished (As per new notification of 1st July, 2017) whether existing running BOND/LUT will be used or New BOND / LUT must get.. to avail export of goods without payment of IGST... ? 3) If apply for new BOND/LUT as per new notification it is mentioned to provide Bank Guarantee .... (Obtain bank guarantee from bank, there charges min. 5 pct to 10 pct on BG amount it means to get 5 Lacs Bank Guarantee on that the bank charges will be Rs. 50000).... So FDR (Fixed Deposit infavour of Authority) or RCMC (membership certificate) can be used in place of BG.... Kindly clarify...
                    Reply
                    1. S
                      Sudhagar
                      Jul 5, 2017 at 1:10 pm
                      1) Exports of goods on payment of IGST and file refund.... it means 100 of IGST paid has been granted to refund ?? 2) If exports of goods under Bond / LUT to be furnished (As per new notification of 1st July 2017) whether existing running BOND/LUT will be used or New BOND / LUT must get to avail export of goods without payment of IGST... ? 3) If apply for new BOND/LUT as per new notification it is mentioned to provide Bank Guarantee .... (To obtain bank guarantee from bank there charges min. 5 to 10 on BG amount it means to get 5 Lacs BG on that bank charges will be Rs. 50000).... So whether FDR (Fixed Deposit infavour of Authority) or RCMC (membership certificate) can be used in place of BG.... Kindly clarify...
                      Reply
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