If you are an exporter coming under the GST ambit, then you have a packet of good news for yourself.
According to the new guidelines, exporters will not be required to pay integrated GST if they furnish bond or letter of undertaking with effect from July 1.
As per the Custom circular on the export procedure, the exporters will now be eligible for refund after furnishing an undertaking.
What is Integrated GST?
IGST is levied on goods transferred from state to another. It is levied on the supplier of goods. IGST is also levied on exporting and importing of goods.
Goods which are exported are slabbed under the “zero percent” category, after a bond or Letter of Undertaking. Another benefit of this provision is that exporters will be eligible for unutilized input tax credit.
How to claim refund of unutilised input tax credit?
Refund of unutilized input tax credit can be claimed by filing an application online through the GSTN.
Zero Rated Supply
“Supplies of goods and services for exports have been categorised as ‘Zero Rated Supply’ implying that goods could be exported under bond or Letter of Undertaking without payment of integrated tax followed by claim of refund of unutilised input tax credit or on payment of integrated tax with provision for refund of the tax paid,” IGST act says.
For seeking IGST refund, an exporter will not be required to file any application as the shipping bill having IGST invoice details shall be deemed to be an application for refund of taxes paid.
Self –Sealing procedure – What is it?
The concept of self-sealing will ensure that the exporters will be held responsible for sealing goods and containers. The self-sealing procedure will be effective from September 1.
“It is the endeavor of the Board to create a trust-based environment where compliance in accordance with the extant laws is ensured by strengthening risk management system and Intelligence setup of the department. Accordingly, Board has decided to lay down a simplified procedure for stuffing and sealing of export goods in containers,” the circular said.