GST on Imports and Exports supplies

As you know that exports are priority of country and government has always given benefit to the exporter in some forms. In the present laws government has given many benefit to the export in terms of refund of input credit, exemption, duty drawback, zero percent tax on export  etc,
In this article we have tried to explain provisions of GST on export and import in simplified manner so that it can make it easy for you to understand the implication on your business.
GST provisions on Exports:-                          

A. Exports means talking goods out of india to a place outside india

Under the GST government have given the following incentives to the exports:

1. Exemption from GST on FINAL PRODUCT

2. Refund of GST paid on inputs

B. Exports are zero rated supply under the GST law and exporter can take benefit of input tax. The register person can claim refund of input tax in the 2 ways :

1.  Supply goods under bond or LTU without payment of IGST

2.  Supply goods in payment of IGST and claim refund of IGST paid                   on goods or services

C. Cases where refund of input tax cannot be claimed

1.  Where credit has accumulated on account of rate of tax on                          input is higher than rate of tax on output.

2.  Goods exported are subject to export duty.

3. Supplier avails duty drawback or claim refund of IGST paid.

GST provisions on Imports:-

Imports means bringing goods into india from a place outside india.

Supply of goods imported into india will be treated as inter-state supply and IGST will be payable on the value and at the rate as may be prescribed by council.

Compensation on import of goods

This is the new tax which is being levied by government on imported goods. If goods are imported into india then GST compensation cess will be levied at the prescribed rate on imported value.

Note:- Rate of exchange for determining the value of taxable goods or services shall be the date on which point of taxation arises in respect of such supply


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