GST : FREQUENTLY ASKED QUESTIONS ON EXPORT

Q1. How are exports treated under the GST Law?

Ans Under the GST Law export of goods or services has been treated as inter State supply and covered under the IGST Act zero rated supply le the goods or services exported shall be relieved of GST levied upon them either at the input stage rat the final product stage

Q2. What will be the impact of GST on zero rating of export of goods?

Ans. This will make Indian exports competitive in the international market

Q3. Have the procedures relating to exports by manufacturer exporters been simplified in GST regime?
Ans. Yes The procedures relating to export have been simplified so as to do away with the paper work and intervention of the department at various stages of export. The salient features of the scheme of export under GST regime are as follows The goods and services can be exported either on payment of IGST which can be claimed as refund after the goods have been exported or under bond or Letter of Undertaking (LUT) without payment of IGST In case of goods and services exported under bond or LUT the exporter can claim refund of accumulated ITC on account of export In case of goods the shipping bill is the only document required to be filed with the Customs for making exports Requirement of filing the ARE 1/ARE 2 has been done away with The supplies made for export are to be made under sell-sealing and sell-certification without any intervention of the departmental officer The shipping bill fled with the Customs is treated as an application for refund of IGST and shall be deemed to have been led after submission of export general manifest and furnishing of a valid retur in Form GSTR3 by the applicant

Q4. For Merchant exporters, is there any change in the Export Procedure under the GST regime?

Ans. The concept of merchant or manufacturer exporter would become Irrelevant under the GST regime The procedure in respect of the supplies made for export is same for both merchant exporter and a manufacturer exporter

Q5 The supplies to a SEZ unit or SEZ developer are treated as zero rated supplies in the GST Law. Then why there is no specific mention in the GST Law about not charging of tax in respect of supplies from DTA unit to a SEZ unit or SEZ developer?

Ans Yes supplies made to an SEZ unit or a SEZ developer are zero rated. The supplies made to an SEZ unit or a SEZ developer can be made in the same manner as supplies made for export ether on payment of GST under claim of refund or under bond or LUT without payment of any IGST

Q6. When a SEZ unit or SEZ developer procures any goods or services from an unregistered supplier, whether the SEZ unit SEZ developer needs to pay IGST under reverse charge or there will be zero rated supplies?

Ans Under the GST Law, any supplier making inter accorded the status of inter State supply under the IGST making a supply to a SEZ unit or SEZ developer has to necessarily obtain GST registration 97. How soon will refund in respect of export of goods or services be granted during the GST regime? (a) in case af refund of tax on inputs used in exports Refund of 90% will be granted provisionally within seven days of acknowledgment of refund application Remaining 10% will be paid within a maximum period of 60 days from the date of receipt of application complete in al respects terut@6% is payable fut refund is not granted within 60 days bin the case of refund of IGST paid on exports Upon receipt of information regarding fumithing of vuld return in Form GSTR by the exporter from the common portat the Customs shall process the daim for round and an amount equa bo the IGST paid in respect of each shipping bill shall be credited to the bank account of the exporter