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What Are Imports And Exports Under GST?

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Under GST, a person importing goods has to pay customs and IGST. CVD and SAD levied under the current regime will be replaced by IGST. IGST will be imposed at the rate applicable to imported good in India as per the rates notified by the Government. However an importer can claim full tax credit of IGST paid on imports.

Importers who were unable to claim credit of CVD or SAD in the current regime have been benefited to claim full tax credit of IGST paid on imports. However, it is pertinent to note that the Basic Customs Duty which is charged on import of goods shall not be eligible as ITC

Imports and exports will be treated as Inter-State supplies and IGST will be imposed on imports/export goods in the India.

Exports will be treated as zero rated supplies and no tax will be payable on export of goods and services.

What Is Import And Export Of Services?

A person who imports services has to pay service tax on imported service as per the applicable rate in India. Services that are exempt from service tax are termed as export services.

What Will be Considered As Import Service Under GST?

A supply will be considered as import service when:

  • Supplier of the service is located outside India.
  • Recipient of the service is located within India; and
  • The place of supply of the service is in India.

What Will Be Considered As Export Service Under GST?

These are specific conditions that are laid down for supply to be considered an export service under GST.

A supply will be treated as export service when:

  • Supplier of the service is located in India.
  • The recipient of the service is located outside India.
  • Place of supply of services is outside India; and
  • Payment for the service has been received by the supplier in convertible foreign exchange.

Declaring GST-ID Number

Under GST, traders will have to declare their GST Identification Number (GSTIN) at the time of import or export while currently all importers and exporters declare Import-export code (IEC). The GSTN number is a 15-digit numeric code with PAN prefixed by state code and embedded with 3-digit details of business of the PAN holder.  

Benefit To Importers/Exporters

Exporters will benefit from 17 central and state taxes in the GST and input tax on goods and services. This will reduce the cost of manufactured goods and services, making exports competitive. The overall import and export costs will drop and compliance is expected to become easy. For importers, a full input credit will be available on IGST paid on imports and in case of an exporter, refund will be given on tax paid on inputs used during the course of business.

SEIS Scheme- Benefit To Import/ Export Services

The Service which is exported from India is eligible for reward of duty credit under the Service Exports from India Scheme (SEIS). Services exporter are eligible to receive unto 5% duty credit under the Service Export from India Scheme.

Filing For Tax Invoice For Export

If IGST is involved on any exports from the country, an Export invoice has to be reflected in terms of ‘Supply meant for Export on Payment of IGST’. Any movement of goods for export wherein IGST is imposed on, is affected in 2 ways: 

  1. Exporter pays IGST in advance and get refund; OR
  2. Exporter can execute a bond/ LUT on IGST levied goods

Details Required In Export Tax Invoice

  1. An endorsement in Export invoice as ‘Supply meant for Export on Payment of IGST’.
  2. Name and address of the recipient
  3. Address of Delivery
  4. Name of the country of Destination
  5. Number and date of application of removal of goods for Export (ARE-1)

GST will change the working interface of both exports and import businesses in the country and this will impact international trade. Post GST implementation will notice a change in customs duties and computation, exemptions in many duty exemptions and also affect foreign trade.

How Do You Avail GST?

We at are ready to enable applicants for GST related online services. You can register and get your GST Registration Certificate without having to leave your home or office. Start your GST experience by giving a missed call on +91 8867880075.

10 Aug, 17

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