Key Points to export the goods with payment of GST at concessional rate on receiving of goods(Notification No. 41/2017-Intergrated Tax Rate / Dated: 23/10/2017):
1. If one registered supplier doing inter-state supply to registered recipient for export.
2. Payment of gst at concessional rate @ 0.10% and excess gst rate on such goods is exempt.
3. Following are the conditions which have to fulfill by registered recipient:
4. Registered supplier should issue the tax invoice.
5. Registered recipient should export the said goods within 90 days.
6. The GSTIN No. and tax invoice number of the supplier should be mentioned on the shipping bill or bill of export.
7. Registered recipient should be registered with an export promotion council or commodity board recognized by the department of commerce
8. Place the order to get the goods at concessional rate and same copy should be sent to the jurisdictional officer of the supplier.
9. Movement of goods should be from the place of supplier directly to custom port or the registered warehouse of the custom.
10. If goods taken from multiple supplier, then aggregate the goods into registered warehouse and then export from there.
11. If there is condition mentioned in g point, then recipient should endorse the receipt of goods on the tax invoice to the warehouse operator and take the acknowledgement from the operator. Endorsed invoice and acknowledgement should be submitted to the supplier and jurisdictional officer of the supplier.
12. Shipping bill, tax invoice and proof of export general manifest or export report copy should be provide to the supplier as well as his jurisdictional officer.
13. Registered supplier cannot avail this exemption is recipient fails to export the goods within 90 days
Export of Goods by registered dealor without payment of Integrated GST:
1. All the registered person who intends to export the goods without payment of IGST should file the Letter of Undertaking(LUT) in a place of bond except those person who have committed an offence under CGST / IGST Act or in any existing law in force where the tax evaded exceeding Rs. 2.5 Lacs.
2. Letter of Undertaking should be furnished on the letter head of the company in duplicate for a financial year annexure to FORM GST RFD 11 and signed by the working partner, MD of the company, CS of the company, the proprietor or the authorized person.
3. The provision shall be apply to all the zero rated supply of goods & services by a registered person to SEZ or SEZ Developer.
1. Validity of LUT:
LUT shall be valid for whole year in which it is tendered. But if goods has not being exported within 3 months from the date of invoice and payment of tax along with interest has not been made as per Rule 96A of CGST Rules, then validity of LUT is being withdrawn until payment of statutory dues is being made.
2. Documents to be submitted for LUT to Jurisdictional Deputy/Assistant Commissioner having jurisdiction over principal place of business:
1. FORM GST RFD11
2. Self Declaration by the company on the letter head
3. Time for acceptance of LUT / Bond:
LUT / Bond should be accepted within 3 working days from its receipt of application. If it is not accepted within the said period then it is deemed to be accepted.
4. Sealing by Officers:
Till mandatory self-sealing is operationalized, sealing of containers, wherever required to be carried out under the supervision of the officer, shall be done under the supervision of the central excise officer having jurisdiction over the place of business where the sealing is required to be done. A copy of the sealing report would be forwarded to the Deputy/Assistant Commissioner having jurisdiction over the principal place of business.
5. Realization of Export Proceeds in Indian Rupee:
There is no restriction on invoicing of export contracts in Indian Rupees in terms of the Rules, Regulations, Notifications and Directions framed under the Foreign Exchange Management Act, 1999. Further, in terms of Para 2.52 of the Foreign Trade Policy (2015-2020), all export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but export proceeds shall be realized in freely convertible currency. However, export proceeds against specific exports may also be realized in rupees, provided it is through a freely convertible Vostro account of a non-resident bank situated in any country other than a member country of Asian Clearing Union (ACU) or Nepal or Bhutan.
Accordingly, it is clarified that the acceptance of LUT for supplies of goods to Nepal or Bhutan or SEZ developer or SEZ unit will be permissible irrespective of whether the payments are made in Indian currency or convertible foreign exchange as long as they are in accordance with the applicable RBI guidelines. It may also be noted that the supply of services to SEZ developer or SEZ unit under LUT will also be permissible on the same lines. The supply of services, however, to Nepal or Bhutan will be deemed to be export of services only if the payment for such services is received by the supplier in convertible foreign exchange.
6. Purchases from manufacturer and Form CT-1: (General Rule)
It is clarified that there is no provision for issuance of CT-1 form which enables merchant exporters to purchase goods from a manufacturer without payment of tax under the GST regime. The transaction between a manufacturer and a merchant exporter is in the nature of supply and the same would be subject to GST.
Key Points related to claiming the manual Refund:
1. Government has open the option to claim the refund of inverted duty structure(Unutilized input credit except nil rated and exempted supplies), Deemed exports, Excess balance in Electronic Cash Ledger.
2. Registered person has to file the FORM GST RFD 01A monthly / quarterly depends upon the filing of his GSTR 1 and valid GSTR 3B. If the turnover of the person is upto Rs. 1.5 Cr then quarterly otherwise monthly after filing the GSTR 1 and 3B.
3. Registered person has to file an undertaking along with the GST RFD 01A. The undertaking said that all the refund should be paid back along with the interest if there is any non compliance of the provisions to claim the refund.
4. For Inverted Duty Structure, the registered person has to file the statement 1 and statement 1A under GST RFD 1A.
5. If the supplier of deemed exports is claiming the refund then along with GST RFD 01A, an undertaking given by the recipient of the goods that he will not claiming the refund of the tax and nor claiming any ITC on that goods. Same shall be applicable in case the recipient is filing the application for refund.
6. The supplier / recipient of deemed export claiming the refund through GST RFD 01A has to file the statement 5B.
7. If the application for refund has been rejected, then the same shall be reflected through an order made under FORM GST RFD 1B until GST PMT 03 has been published on common portal.
8. Refund order has been issued within 7 Days.
9. Sanction order has been issued under GST RFD 04 and 06.
10. Refund has been paid through FORM GST 05.