Daily Archives: July 19, 2017

Drawback after GST regime

Drawback after GST regime 1. For a transition period of three months i.e. 1.7.2017 to 30.9.2017, composite rates of All Industry Rate (AIR) drawback are available to exporters. I. These composite rates are subject to certain conditions during transition period that ensure that input credit /refund under GST and drawback of composite rates are not… Read More »

Bond or LUT along with Shipping Bill

Bond or LUT along with Shipping Bill 1. As per rule 96A of the Central Goods and Services Tax Rules, 2017 any registered person exporting goods without payment of integrated tax is required to furnish a bond or a Letter of Undertaking (LUT) in FORM GST RFD-11. 2. The following registered person shall be eligible… Read More »

GSTIN / PAN and Invoice information in Shipping Bill

  GSTIN / PAN and Invoice information in Shipping Bill 1. Quoting GSTIN in Shipping bill is mandatory if the export product attracts GST for domestic clearance. 2. Quoting PAN (Permanent Account Number), which is authorized as Import Export code by DGFT, would suffice if the exporter exclusively deals with products which are either wholly… Read More »

GST : No exemptions for unutilized EXIM scrips

Question : What will be exemptions available for various authorizations/scrips which have been issued prior to 1.7.2017 and remain unutilized on 1.7.2017? Answer: No exemption under GST Law is provided. The EXIM scrips under the export incentive schemes of chapter 3 of FTP (for example MEIS and SEIS) can be utilised only for payment of… Read More »

Category: GST

Can duty credit scrips be used for payment of GST ?

Question : Can duty credit scrips such as Merchandise Ex ports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) be used for payment of GST? Answer: No. MEIS and SEIS scrip can be used only for payment of Basic Customs Duty or additional duties of Customs on items not covered under GST… Read More »

Category: GST

Re-export of imported goods, How to Claim drawback after GST

Question  : On re-export of imported goods, drawback of all duties paid at the time of importation was admissible earlier, as per the rates prescribed in this regard. What will be the position in respect of re-export made after 1st July 2017, of the goods imported prior to 1st July 2017? After 1st July 2017,… Read More »

Category: GST

Where to file application for fixation of brand rate after GST

Question : Applications for fixation of brand rate used to be filed with jurisdictional Commissioner of Central Excise having jurisdiction over the factory where export goods were manufactured. Under GST regime, will there be any change regarding filing of application for fixation of brand rate? Answer: With effect from 1st July 2017, applications for fixation… Read More »

Category: GST

Drawback if Exporter uses GST Paid inputs and Pre GST Stock

Question : If an exporter has stock of GST paid inputs as well as inputs from pre GST period and if inputs from both lots are used in export goods, what shall be Drawback on such exports? Answer: During the transition period upto 30th September 2017, exporters can avail drawback at higher rate subject to… Read More »

Category: GST

No Drawback at higher AIR even if ITC not availed by exporter

Question : Is Drawback at a higher All Industry Rate (AIR) admissible if an exporter has not availed Input Tax Credit of GST or refund of IGST paid on exported goods ? Answer: No. After 30th September 2017, drawback will be admissible only at lower rate determined on the basis of the custom duties paid… Read More »

Category: GST

Duty Drawback scheme continue under GST

Question : Will duty Drawback scheme continue under GST regime? If yes, what will be the rates of Drawback? Answer: Yes. Duty Drawback scheme with certain modifications will continue under the GST regime. The changes in the said scheme are as follows: • The Drawback shall be available only of Customs duties on imported inputs… Read More »

Category: GST

GST on Agency Commission of buying agents of foreign buyers

Question : Is GST payable on Agency Commission earned by buying agents of foreign buyers? Answer: Yes. Since commission is received by agents in India, and the place of supply of service is in India, GST will be payable. GST on Export : FAQ’s GST on Textile : FAQ’s GST on MSME : FAQ’s Related… Read More »

Category: GST

Purchase from unregistered persons : Exporter to pay GST on Reverse Charge

Question : Will an exporter be required to pay GST in case of goods procured from unregistered persons (including unregistered job workers)? Answer: In case of supply by an unregistered person (including unregistered job workers), the registered person i.e., exporter shall be liable to pay GST under reverse charge mechanism. However the exporter can avail… Read More »

Category: GST

Whether an EOU can clear goods in DTA ?

Question : Whether an EOU can clear goods in DTA? Answer: Yes, an EOU can clear goods in DTA in accordance with the provisions laid in the Foreign Trade Policy. GST on Export : FAQ’s GST on Textile : FAQ’s GST on MSME : FAQ’s Related Topic on GST Topic Click Link GST Acts  Central… Read More »

Category: GST

Supplies to SEZ by DTA : How to claim drawback under GST ?

Question : I supply goods to SEZ units and developers. For such supplies, presently drawback is available to the recipient or to me (if recipient gives a disclaimer). What is status of such drawback under GST regime? Answer: There is no change except for the fact that if drawback is claimed by DTA supplier, the… Read More »

Category: GST

GST procedurefor merchant exporters

Question : We are merchant exporters dealing in various products.As per current procedure, we purchase goods from a particular factory against CT1/ARE1 so that no excise is levied on us. After goods are exported, we provide proof of export and Form H (for sales tax exemption) to the concerned factory. How would GST impact us… Read More »

Category: GST

Exporter of Exempt Supply can avail refund under GST

Question : We are engaged in the manufacture of exempted excisable goods for export. We availed input stage rebate used in the manufacture of exported goods. How would our case be dealt under GST law if our supply remains an exempt supply? Answer: Under IGST law a person engaged in export of goods which is… Read More »

Category: GST

Exporters not doing Home consumption also require GST Registration

Question 15: M/s XYZ is engaged in export of goods only having exports of approx. Rs. 5 crores and no clearances for home consumption are affected. M/s XYZ was not required to be registered under Central Excise. Whether M/s XYZ would be required to get itself registered under GST? Answer: Yes, because exports have been… Read More »

Category: GST

Supplies to or from EOU not exempted from GST

Question : Whether supplies to or from EOU will be exempted from GST? Answer: No. • Under the GST Law, IGST or CGST plus SGST will be payable by the suppliers who make supplies to the EOU. The EOU will be eligible to take Input Tax Credit of the said GST paid by its suppliers.… Read More »

Category: GST

Supplies to or from EOU not exempted from GST

Question : Whether supplies to or from EOU will be exempted from GST? Answer: No. • Under the GST Law, IGST or CGST plus SGST will be payable by the suppliers who make supplies to the EOU. The EOU will be eligible to take Input Tax Credit of the said GST paid by its suppliers.… Read More »

Category: GST

Tax benefits available to EOU scheme in GST regime

Question 11: What tax benefits will be available to EOU scheme in GST regime? Answer: The duty free imports under GST regime will be restricted to Basic Customs Duty. Exemption from the additional duties of Customs, if any, under section 3(1), 3(3) and 3(5) of the Customs Tariff Act, 1975 and exemption from Central Excise… Read More »

Category: GST

whether EOU scheme will continue under GST

Question : Whether the EOU scheme will continue to be in operation in the GST regime and whether EOU is required to take registration under the GST Law? Answer: EOU is like any other supplier under GST and all the provisions of the GST Law will apply. However, the benefit of Basic Customs Duty exemption… Read More »

Category: GST

What is deemed export under GST Law of India

Question : What is deemed export under GST Law? Whether any supply has been categorized as deemed export by the Government? Answer: Deemed export has been defined under Section 2(39) of CGST Act, 2017 as supplies of goods as may be notified under section 147 of the said Act. Under section 147, the Government may,… Read More »

Category: GST

Export of goods to Nepal & Bhutan treated as zero rated under GST

Question  : Will export of goods to Nepal and Bhutan treated as zero rated and thereby qualify for all the benefits available to zero rated supplies under the GST regime? Answer: Export of goods to Nepal or Bhutan fulfils the condition of GST Law regarding taking goods out of India. Hence, export of goods to… Read More »

Category: GST

When will you get refund for export of goods or services under GST

Question : How soon will refund in respect of export of goods or services be granted during the GST regime? Answer: (a) In case of refund of tax on inputs used in exports: • Refund of 90% will be granted provisionally within seven days of acknowledgement of refund application. • Remaining 10% will be paid… Read More »

Category: GST

Supplies to SEZ units by unregistered supplier : GST Liability

Question : When a SEZ unit or SEZ developer procures any goods or services from an unregistered supplier, whether the SEZ unit or SEZ developer needs to pay IGST under reverse charge or these will be zero rated supplies? Answer: Supplies to SEZ unit or SEZ developer have been accorded the status of inter-State supplies under… Read More »

Category: GST

Supplies from DTA unit to SEZ unit under GST

Question : The supplies to a SEZ unit or SEZ developer are treated as zero rated supplies in the GST Law. Then why there is no specific mention in the GST Law about not charging of tax in respect of supplies from DTA unit to a SEZ unit or SEZ developer? Answer: Yes, supplies made to… Read More »

Category: GST

Export Procedure under the GST for merchant exporters

Question : For merchant exporters, is there any change in the Export Procedure under the GST regime? Answer: The concept of merchant or manufacturer exporter would become irrelevant under the GST regime. The procedure in respect of the supplies made for export is same for both merchant exporter and a manufacturer exporter. GST on Export… Read More »

Category: GST

How procedure for Export by manufacturer simplified under GST ?

Question : Have the procedures relating to exports by manufacturer exporters been simplified in GST regime? Answer: Yes. The procedures relating to export have been simplified so as to do away with the paper work and intervention of the department at various stages of export. The salient features of the scheme of export under GST… Read More »

Category: GST

How are exports treated under the GST Law?

 How are exports treated under the GST Law? Answer: Under the GST Law, export of goods or services has been treated as: • inter-State supply and covered under the IGST Act. • ‘zero rated supply’ i.e. the goods or services exported shall be relieved of GST levied upon them either at the input stage or… Read More »

Category: GST

GST on Export : Free E Book : FAQ’s

GST on Export FAQ’s on Export under GST Question 1 : How are exports treated under the GST Law? Question 2: What will be the impact of GST on zero rating of export of goods? Question 3: Have the procedures relating to exports by manufacturer exporters been simplified in GST regime? Question 4: For merchant… Read More »

GST on MSME : Free E Book : FAQ’s

GST on MSME Read FAQ’s : GST on MSME Question 1: What is GST? Question 2: On what supply is GST levied? Question 3: Will GST be levied on all goods or services or both? Question 4: How many types of GST will be levied on different kinds of supply of goods or services? Question… Read More »

Telangana GST Act 2017 – Download : Chapter Wise Section Wise

Telangana GST Act 2017 THE TELANGANA GOODS AND SERVICES TAX ACT, 2017 (Act No.8 of 2017) Telangana GST Act 2017  Chapter Wise Section Wise CHAPTER I PRELIMINARY Section – 1 Short title, extent and commencement Section – 2 Definitions CHAPTER II ADMINISTRATION Section – 3 Officers under this Act Section – 4 Appointment of officers… Read More »

Compensation Cess rates on cigarettes Increased : Notification No. 3/2017-Compensation Cess (Rate) Dated 18th July, 2017

Notification No. 3/2017-Compensation Cess (Rate) Seeks to amend notification No. 1/2017- Compensation Cess (Rate), dated 28th, June, 2017 so as to increase the Compensation Cess rates on cigarettes as mentioned in the notification with effect from 18th, July, 2017 [TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]… Read More »

Topic wise Commentary on GST Act of India

Topic wise Commentary on GST Act of India Here we have compiled topic wise commentary on CGST Act 2017 , IGST Act 2017  and UTGST Act 2017 of India and SGST Acts Topic Link     GST Rates GST Rates Schedule   How to Search HSN / SAC GST Tax Rates   HSN code Wise GST Rates on Goods : CGST… Read More »

Category: GST

Section 130 Haryana GST Act 2017 : Confiscation of goods or conveyances and levy of penalty

Section 130 Haryana GST Act 2017 ( Section 130 Haryana GST Act 2017  explains Confiscation of goods or conveyances and levy of penalty  and is covered in Chapter XIX : OFFENCES AND PENALTIES  ) Confiscation of goods or conveyances and levy of penalty 130. (1) Notwithstanding anything contained in this Act, if any person- (i) supplies or receives any goods in… Read More »