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Gst on import and export

Krishna (Manager - Genesis Tax Consultant) (531 Points)

03 July 2018

Dear Sirs,

1) A company did the Import and Export without the Bank Guarantee / LUT bond on FY 17-18, they did not pay any GST with related to these transaction. However while Importing the goods, IGST is applicable on Custom Duty they availed the IGST as Input GST.

Please clarify me, what will be the impact of GST on Export sales and sale to SEZ? Apart from IGST on Custom duty is any other input GST he can claim?

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4 Replies

Vinod Babu (24191 Points)
Replied 03 July 2018

with LUT No need to charge IGST Tax
without LUT needs to charge IGST tax

exports are considered zero rated supplies under sec 16 of IGST Act and you can export With payment of IGST or Under a bond or letter of undertaking.
a taxpayer who exports the goods or service will have to furnish LUT in GST RFD-11 form on the GST portal.

The following supplies of goods or services or both will attract GST at 0%:

Exports of goods or services or both

Supply pf goods or services or both to a Special Economic Zone Developer or Special Economic Zone Unit

There reason for the law to declare the above supply of goods or services or both at 0% (and not nil rated or exempt) is to allow the exporter of such supplies to avail the input credit accumulated in making these supplies. Such input credit may be utilised to pay output tax on other taxable supplies made by the exporter or claimed as a refund as the case may be.

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Krishna (Manager - Genesis Tax Consultant) (531 Points)
Replied 03 July 2018

Dear Sir,

Now in the above case he has to pay IGST for both Export sales and Sales to SEZ @ 18%. Am I right Sir?

Krishna (Manager - Genesis Tax Consultant) (531 Points)
Replied 03 July 2018

Dear Vinod Sir,

Now in the above case he has to pay IGST for both Export sales and Sales to SEZ @ 18%. Am I right Sir?

Vinod Babu (24191 Points)
Replied 03 July 2018

Yes you have to pay IGST for the export and you can claim refund of such tax paid on the supplied goods or services, or both.
The applicant has to apply for the refund as per the conditions specified under section 54 of the CGST Act.