Goods and Services Tax – General FAQ on GST – Frequently Asked Questions – 170731-02 – Question 1 : How will imports be taxed under GST? Answer : All imports will be deemed as inter-State supplies for the purposes of levy of GST. IGST is leviable on imports in addition to other duties of customs. Full set-off will be available as ITC of the IGST paid on import on goods and services. Question 2 : How will exports be treated under GST? Answer : All exports will be deemed as inter-State supplies. Exports of goods and services will be treated as zero rated supplies. The exporter has the option either to export under bond/Letter of Undertaking without payment of tax and claim refund of ITC or pay IGST by utilizing ITC or in cash at the time of export and claim refund of IGST paid. Question 3 : How can IGST be paid? Answer : The IGST can be paid by utilizing ITC to the exten
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input tax credit. Identical provisions exist under the IGST Act, 2017 and relevant SGST/UTGST Acts. Question 5 : Can unutilized input tax credit be allowed as refund to exporters? Answer : Yes. Section 54(3) of the CGST Act, 2017 provides for refund of any unutilised input tax credit of inputs and input services at the end of any tax period except where (i) goods exported out of the India are subjected to export duty; or (ii) the exporter claims drawback of CGST or refund of IGST paid on such export. Question 6 : What is the procedure for claiming refund by exporters? Answer : Refund can be claimed by filing an application electronically in prescribed form along with required documents through the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner. The refundable
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p> Answer : Refundable amount shall be sanctioned within 60 days from the date of receipt of application complete in all respects. However, as a measure of facilitation to exporters, except for certain notified categories, ninety per cent of the amount excluding the amount of input tax credit provisionally accepted will be refunded provisionally within seven days from the date of acknowledgement. Question 8 : Will the principle of unjust enrichment apply to exports? Answer : The principle of unjust enrichment is not applicable in case of exports of goods or services as the recipient is located outside the taxable territory. Question 9 : Today under VAT/CST merchant-exporters can purchase goods without payment of tax on furnishing of a declaration form. Will this system be there in GST? Answer : No, there is no such provision in GST. Tax will be payable on their inward supplies an
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If the goods or, capital goods, as the case may be, are not returned to the principal within the time specified above, the same shall be deemed to have been supplied by the principal to the job worker on the date the goods were sent out to the job worker and the principal shall be required to pay tax accordingly on such supplies. Question 11 : Is a job worker required to take registration? Answer : As job work is a service, it would be considered a supply and the job worker would be required to obtain registration if his aggregate turnover exceeds the prescribed threshold of Rs. 20 lakhs or, as the case may be, Rs. 10 Lakhs. Question 12 : Whether exemption from all duties of Customs be available on imports under exemption schemes such as EPCG, Advance licence, etc. under GST regime? Answer : No. Exemption will be available only from Basic Customs Duty. IGST will be payable on such imports. However, t
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ever, as an export facilitation measure, for the transition period of 3 months from July to September, 2017, drawback at higher composite rates will continue to be granted subject to the condition that no input tax credit of CGST/IGST is claimed, no refund of IGST paid on export goods is claimed and no CENVAT credit is carried forward. Question 15 : Is GST payable on consideration received for sale of scrips? Answer : Yes. Scrips are goods and sale of scrips has to be treated as supply of goods. GST at applicable rate will therefore be payable. Question 16 : Would GST be payable on goods not intended to be sold, taken out for participation in overseas exhibitions and trade fairs and brought back into India as these goods are meant for exhibition only? Answer : GST is not payable in such cases. Exporters will need exhibition participation letter and no foreign exchange involved letter from the concern
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