FAQs on export and FTP related issues of GST dated 07-07-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
The e-mails and tweets received by DGFT were scrutinized and developed into a short FAQ. It should be noted that the tweets received or the replies quoted are only for educational and guidance purposes and do not hold any legal validity.
Q 1. Has DGFT/Department of revenue issued any clarification to explain implication of GST on FTP schemes/exports/imports?
Reply. I-DGFT has issued Trade Notice No. 11 on June 30, 2017.
Please see the following link :
http://dgft.gov.in/Exim/2000/TN/TN17/Trade%20Notice%20No.11%20dt.30.06.2017.pdf
II-DOR has issued a guidance note on imports-exports. Please see the following link :
http://www.cbec.gov.in/resources//htdocs-cbec/guidnce-note-imprtrs-exprtrs.pdf;jsessionid=64B4B7C8DC1C02885DFAB663533AAA5E
Q 2. What is the definition of exports under the GST?
Reply. Exports of goods means taking go
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b) He may export on payment of IGST and claim refund of IGST paid on goods and services exported.
The SEZ developer or SEZ unit receiving zero rated supply can claim refund of IGST paid by the firm making supply to SEZ.
Q 6. What is the time line for obtaining refund on the GST paid?
Reply. Refund on account of export
I. For 90% of the total amount claimed as refund excluding the amount of input tax credit, provisional refund will be granted within 10 days of making of application or within 7 days of issuance of acknowledgement of the application.
II. Refund of the balance 10% will be granted after verification of documents furnished by the applicant.
Q 7. What type of duties can be paid using MEIS or SEIS scrips now? Can we use these scrips to pay GST?
Reply. For items covered under the GST, scrips can be used for payment of Basic Custom Duty, Safeguard Duty, Transitional Product Specific Safeguard Duty and Antidumping Duty.
For items not
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oods or services).
Q 10. Will the exemptions, available to 100% EOUs & SEZs in the pre GST regime would continue?
Reply. SEZs
No change in the operation of the SEZ scheme.
SEZs can continue to import raw materials without payment of any duty. Supplies to SEZs would also be treated as Zero rated supplies.
EOUs
(i) Imports by EOUs
The EOUs will continue to get exemption from payment of the basic Customs Duty, however they will have to pay IGST on imports.
* On the IGST paid on import of inputs, ITC would be available which can be utilized for payment of GST payable on the goods cleared in the DTA. Refund of the unutilized ITC can also be claimed under Section 54(3) of CGST Act.
* The facility of duty free import of capital goods under the Procurement Certificate procedure will not be available. To import capital goods at zero duty, EOUs will have to follow proce
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bsp; Refund of any benefits taken on procurement of inputs from DTA under Chapter 7 of FTP and used in the manufacture of products under DTA sale.
(iv) Inter Unit Transfers
Supply of goods from one EOU to another EOU (inter-unit transfer) will require payment of applicable GST. The BCD exemption availed on inputs by the supplier EOU, utilized in such transferred goods would have to be reversed by the recipient EOU at the time clearance of such goods in DTA. Same provisions apply on sending of Goods for Job work.
(v) Exempt products
For GST exempt Goods like Petroleum products, the existing provisions provided under notification no. 52/2003-Cus., notification no. 22/2003-C.E. and Notification no. 23/2003-C.E. will continue to apply for import, domestic procurement and domestic clearance respectively.
Q 11. How to update GST number in IEC?
Reply. There is no need to update or incorporate the GSTIN in the IEC. However, it is informed t
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rts and take Input Tax Credit (ITC) on the duty paid. He cannot claim refund of any unutilized input tax credit after the exports.
Q 13. Will Invalidation and ARO be available under Advance Authorisation or EPCG scheme post GST implementation?
Reply. ARO
For items covered under the GST, No Advance Release Order (ARO) facility will be available in Advance Authorisation and EPCG scheme.
For items not covered under the GST (Listed in the Schedule 4 of Central Excise Act, 1944 read with The Taxation Laws (Amendment) Act, 2017 No. 18 of 2017, with effect from July 1, 2017) ARO would be available.
Invalidation
Invalidation facility will be available for both Advance Authorisation and EPCG schemes, but applicable GST would need to be paid while making local procurement, using an invalidation letter.
Input Tax Credit (ITC) of the GST paid on such local procurement can be availed as per CGST Rules, 2017. Please also refer to DGFT Trade Notice No. 11/2018, dated 30-6-2017.
Q 14
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se Act, 1944, the TED refund would be available, provided the items are eligible for supply under the said category of the deemed exports under chapter 7 of the FTP, and there is no exemption from payment of excise duty.
2. The drawback as provided under Chapter 7 would be limited to the refund of basic custom duty only.
Q 18. Whether balance import quantities under Advance Authorisations issued before 1-7-2017 can be utilised after 1-7-2017? And, will there be any implications on export obligation?
Reply. The balance import quantities under Advance Authorisations can be utilised for duty free import but only Basic Customs Duty will be exempted on import after 1-7-2017. The applicable IGST will be required to be paid. There will be no implication on export obligation of Advance Authorisations.
Q 19. Whether balance import quantities under EPCG issued before 1-7-2017 can be utilised after 1-7-2017? And, will there be any implications on export obligation?
Reply
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