We are a manufacturing company buying local material and also import materials i understand under GST on need to pay CG/SG or IGST for local purchases on import material used for manufacturing of both localled sold and also for exports we need to pay BCD , IGST
Question 1. Whether we can make use of total input credit available - for local sales ( materials used for local sales or export )
2. if answer is no to Q1, then whether we need to maintain separate books for exports?
3. How can we claim back the BCD which are used for exports ?
10 June 2017
1 Input credit available for local sales material used. 2 You need to maintain separate books for exports. 3 Claim duty draw back on BCD and IGST paid.
10 June 2017
Dear Sir As per Section 16 (3) of IGST Act, one has the option to pay IGST on export of goods and adjust the input tax credit. when we set off such ITC it means we can set off against input IGST and then CGST and SGST and pay net
seek your advice on the same Section 16 (3) is reproduced below (3) A registered person making zero rated supply shall be eligible to claim refund under either of the following options, namely:–– (a) he may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit; or (b) he may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied,
my one more question is when we pay IGST on Export sales value, whether we can set off IGST of material used for export only or whether we can use IGST on material procured for local purchases - meant for local sales only.
CAclubindia
