GST can be cumbersome and one needs to know about their taxation schemes. As a merchant / exporter one has to pay GST and there are benefits available as refunds under certain schemes. These refunds can be made possible with proper claims. Many people make mistakes and cannot avail such claims.
This time we will learn about the basics of GST refunds where most of the exporters tend to make mistakes.
# How GST is paid?
GST on exports can be paid in two ways
Through IGST
Through the payment of IGST- Exports are treated as an interstate movement of goods & hence attract IGST.
If you pay IGST on exports you can claim the refund on this Integrated GST paid, by filing a Shipping Bill (Deemed Refund Application) & other supporting documents.
The person-in-charge of such exports must file an Export Report or Export Manifest & mention the Shipping bill number & dates to file a refund claim.
Through Bond / Letter of Undertaking (LUT)
Through Bond or Letter of Undertaking (LUT)- If the export of goods takes place without the payment of the Integrated GST & using a Bond or LUT, through Form GST RFD-11, then the Exporter can claim a refund of the unutilized & eligible ITC.
Any taxes paid as an input to the Exports can be claimed by the Exporter.
You must file an Export Report or Export Manifest under the Custom’s Act and then file a refund application on the common portal.
An exporter can carry out exports, with or without paying the GST. In either case, he will be able to claim a refund of the IGST paid or the unutilized Input Tax Credit (where IGST is not paid).
# Who can claim GST benefits?
Taxpayer can claim a refund in GST in the following scenarios :
# What are the pre-requisites for GST refunds?
Taxpayer can claim a refund in GST in the following scenarios :
# Is there a specified timeline for claiming GST Refunds on Exports?
What is a ‘Relevant Date’?
The most relevant date to claim the refund under GST for exports is the point in time when a Taxpayer can start claiming the applicable GST refund.
You can make the GST Refund Application till two years from the Relevant Date.
# FAQ’s regarding GST refunds on exports
Did you know?
The Central Board of Indirect Taxes (CBIC) has cleared over Rs 10,700 crore worth refunds in GST and customs duty between April 8-23. In the ‘Special Refund and Drawback Disposal Drive’, the CBIC officers have cleared over 1.07 lakh Goods and Services Tax and IGST refund claims worth Rs 9,818.12 crore.
Over 1.86 lakh customs and duty drawback refund was processed totaling Rs 915.56 cr.
The amount mentioned above was either blocked or was pending and that was causing a problem to exporters specially during these unprecedented times.
We understand that the plethora of conditions and rules mentioned along with complex definitions are difficult to comprehend all at once. Hence, we at Bizbrains are always available to resolve your queries and doubts, however big or small
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