25 June 2018
Dear Sir, Can anyone guide me please on the following issue:
Basically ours is an 100% export oriented unit.We are the exporters of Meat. We purchase raw/fresh meat from the suppliers and give it to the freezing industries. We deduct TDS @ 2% u/s 94-C while making payment of the bill of freezing. Now I would like to inquire whether GST has to be paid on the bills of freezing as follows:
Gross Freezing Rs. 1,00,000 Less TDS @ 2% u/s 94-C Rs 2,000 Add CGST Add SGST or Add IGST on Rs 1,00,000 @ 5% or @ 18%
In my opinion GST should neither be paid nor recovered on 100% exportable products.
26 June 2018
Export of goods are zero rated supplies under Section 16 of the IGST Act. You could export under LUT/bond without charging GST and claim refund of unutilised credit.
CAclubindia
