H form and are -1

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abhijeet sangle (Querist)
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21 June 2017 I am an exporter and wondering how H forms & ARE-1 form be handled for VAT & Excise refunds / credit. Currently we issue H form and ARE-1 to our suppliers and get goods without VAT/Excise, will the process change after GST India?

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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21 June 2017 Under GST regime all forms i.e 'C' form, 'F' form, 'H' form will be abolished and until and unless supply is specifically exempted or taxable at 0% rate, every supply is taxable and tax has to be paid even if stock is transferred from one branch to other in other state.

For exporters government has clarified that first they purchase goods after paying tax and refund claim is to be filed after shipment is made

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Prateek

Prateek (Expert)
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04 July 2017 refer http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2017/circ26-2017cs.pdf

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Asha Kanta Sharma

Asha Kanta Sharma

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27 July 2024 ### Handling H Forms and ARE-1 Forms for VAT and Excise Refunds/Credit

**1. Understanding H Form and ARE-1:**

**H Form:**
- **Purpose:** Used under the Central Sales Tax (CST) Act to claim exemption from CST on sales of goods meant for export.
- **Process:**
- Issued by the buyer (exporter) to the seller.
- The seller issues goods without CST, and the buyer submits Form H to the seller to justify the tax exemption.
- The buyer submits the completed Form H along with the invoice and maintains it for records.

**ARE-1 Form:**
- **Purpose:** Used for claiming a refund or exemption of central excise duty on goods that are exported.
- **Process:**
- Issued by the manufacturer (or the exporter) to the Central Excise authorities.
- It provides details of goods being exported under the duty drawback scheme or for exemption from excise duty.

**2. Post-GST Implementation**

With the introduction of GST, the handling of VAT and Excise processes and forms, including H Forms and ARE-1, has undergone significant changes:

**A. Impact of GST on H Form and CST:**
- **CST and Form H:** CST is no longer applicable under GST. The concept of CST has been replaced by Integrated Goods and Services Tax (IGST) on inter-state supplies. Therefore, Form H is no longer relevant under the GST regime.
- **Export Exemptions:** Under GST, exports are considered as a `zero-rated supply`. This means that exports are subject to a 0% GST rate, and exporters can claim a refund of the input tax credit (ITC) on inputs and input services used in the export.

**B. Impact of GST on ARE-1 and Excise Duty:**
- **Excise Duty and ARE-1:** Central Excise duty was largely replaced by GST on most goods, but still applies to products like tobacco and petroleum products. For goods under GST, ARE-1 is generally not required as GST is applied, and the process for refunds or exemptions would be under the GST framework.
- **Duty Drawback:** For exporters, duty drawbacks are handled under the GST system where you can claim refunds on input tax credit for exported goods.

**3. Steps for Handling Export Procedures Post-GST:**

**For Exporters:**
1. **Zero-Rated Supply:**
- Exporters should treat exports as zero-rated supplies under GST. This means you will not charge GST on export invoices but can claim a refund on the input tax credit.

2. **Claiming Refund:**
- Refunds of ITC for exported goods are processed through the GST portal. You need to file GST returns (GSTR-1 for outward supplies and GSTR-3B for summary) and then apply for a refund of the accumulated ITC.

3. **Export Documentation:**
- Maintain proper documentation, including export invoices, shipping bills, and any other proof of export.

**For Suppliers:**
1. **Issuing Invoices:**
- Suppliers will issue invoices without GST for goods supplied to exporters. Exporters will need to provide evidence of export to claim a refund of the input credit.

2. **Documentation:**
- Suppliers should maintain copies of invoices and supporting documents for audits and compliance.

**4. Summary of Changes:**

- **H Form:** No longer applicable under GST. Exporters should focus on zero-rated supply provisions and ITC refunds.
- **ARE-1 Form:** Generally not applicable under GST for most goods. For excise duty on specific goods, the existing provisions under GST should be reviewed.

**In Conclusion:**
Post-GST, the process for handling tax exemptions and refunds for exports has shifted from CST and Excise to GST-based procedures. Exporters and suppliers should follow GST regulations and use the GST portal for processing refunds and compliance.