Goods and Services Tax – General FAQ on GST – Frequently Asked Questions – 170707-03 – 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
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Reply. An exporter would be eligible to claim refund under one of the following two options, namely – (a) He may export under bond, without payment of IGST and claim refund of unutilized input tax credit in; (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
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.gov.in/Webappl/Trade-Guide-on-Imports II-GST rates – http://www.cbec.gov.in/resources//htdocs-cbec/gst/chapter-wise-rate-wise-gst-schedule-03.06.2017.pdf III-IGST Rates for Goods http://www.cbec.gov.in/resources//htdocs-cbec/gst/Notification%20for%20IGST %20rate%20Schedule-1.pdf Q 9. Can the EOUs continue to get duty free supplies from domestic market? Reply. An EOU will have to pay the applicable GST on the import or domestic sourcing of inputs (goods 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
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the GST paid while taking domestic supplies and same can be used for payment of GST on finished goods cleared in DTA. (iii) DTA sale DTA sale shall be subject to fulfillment of the following conditions : • fulfillment of positive NFE • payment of applicable GST on product under DTA sale • Reversal of the BCD exemption availed on the inputs used in the manufacture of products under DTA sale. The reversal of BCD would be as per Standard Input Output norms published by the DGFT or norms fixed by Norms Committee of DGFT (where no SION is fixed). • 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)
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p> Q 12. Under GST regime, can we get duty free benefit (all duties exempted) if we import using Advance authorization or EPCG? Reply. Under GST regime, both the Advance Authorization and EPCG holders would continue to get the exemption from payment of the Basic Customs Duty, Safeguard Duty, Transitional Product Specific Safeguard Duty and Antidumping Duty. And for items specified in Fourth Schedule to Central Excise Act, 1944 (specified petroleum products, tobacco etc.) exemption from Additional C Duty leviable under Sections 3(1), 3(3) and 3(5) of the Customs Tariff Act, 1975 will also be available. However there is one major change. Now an Advance Authorisation holder will have to pay IGST at the time of imports. He can take Input Tax Credit (ITC), and after export, claim refund of any unutilized input tax credit at the end of tax period. The EPCG holder also will have to pay IGST at the time of imports and take
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h 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. Do we need to register for VAT? Reply. You need to register only with GSTN and obtain GSTIN. Q 15. Is cess on customs duty to be paid on imports under GST regime? Reply. Education cess and Compensation cess would be applicable on imports. Q 16. Will IGST be refunded for Capital Goods imported under EPCG scheme? Reply. The EPCG holder also will have to pay IGST at the time of imports and take Input Tax Credit (ITC) on the duty paid. He cannot claim refund of any unutilized input tax credit after the exports. Q 17. Will Deemed export drawback and TED refund be available under GST regime for deemed exports? Reply. The following provisions would apply under the GST regime for t
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