Clarity required on Export and Imports of EOU units under GST Regime.
By: – RadheyShyam Mangal
Goods and Services Tax – GST
Dated:- 17-7-2017
Under the regime of Central Excise and Customs, the 100% EOU's have been exporting their products directly as well as through Merchant Exporters. Further, they were also procuring inputs/ Capital Goods without payment of duty in terms of exemption Notification No. 22/2013-CE dated 31.03.2013 and 52/2003-Cus dated 31.03.2003 as amended.
CLARIFICATION FOR BOND FOR IMPORT IS NEEDED IMMEDIATELY
In old Central Excise regime, the 100% EOU's had executed B-17 Bond which was all purpose Bond for Exports as well as Imports and the same was in the nature of running Bond.
In view of GST Regime, it is clear that no duty free procurements is allowed for domestic procurement but the exemption of BCD and ED Cess & SHEC Cess on such BCD are still exempted under Notification No. 52/2003-Cus read with recent Notification No. 5
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r Duty Free (BCD) Imports like allowed in case of Exports vide Circular No 4/4/2017-GST dated 07.07.2017, because the units would require some time for completing the formalities for execution of such Bond.
* The format of Continuity Bond as available in Customs law is meant for Provisional Duty Bond, question is whether it requires any amendments or modifications to suit the EOU requirement.
* Whether the said Bond to be furnished for Imports is a running Bond (with debit / credit facility) or a One-time Bond (separate Bond for each consignment / Import)?
* Whether said Bond is required to be executed separately for each of Port of Import from where the EOU is expected to Import their goods?
* Whether such Bond could be surety Bond or if security then what percentage of security by way of Bank Guarantee is required to be submitted?
* Whether the functions bestowed upon the Deputy/ Assistant Commissioner of Customs can be continued to be performed by jurisdictional Central GS
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per FTP provisions the Export through Merchant Exporter is allowed provided the goods are directly exported from the premises of EOU unit under their Bond ?
* In case such Export are not allowed without payment of duty then what duty is to be charged ? whether it will be only IGST ? or Whether it will be Aggregate of Customs Duty i.e. BCD + Ed Cess + SHE Cess + IGST? Or whether it will be IGST + Duty of BCD forgone on Inputs involved on such exported products ?
* In case, the duty components on such exports comprises BCD element then how the Merchant Exporter would get Refund of such component because as per the GST law such Merchant Exporter can get the credit of IGST portion only which ultimately is entitled for refund under the provisions of Section 54 of CGST Act read with relevant rules ? in such case no Merchant Exporter would like to get his export orders fulfilled through EOU units.
* Whether EOU can export through Merchant Exporters on the basis of LUT/Bond of such Merch
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iven to buyer for settling the invoice ( Even if the GST invoice will have the IGST calculated on it) and RBI payment will be settled through E-BRC as per existing practice. That means the IGST won't be exported along with the material value, hence not payable by overseas buyer.
Dated: 18-7-2017
Reply By ROHIT GOEL as =
We have generate two separate invoice – one Export Invoice and one Tax Invoice under GST and which invoice is to be given to Custom clearance. Also please suggest the relevant place for reading in details for procedures in this respect
Dated: 18-7-2017
Reply By JAIPRAKASH RUIA as =
Custom procedure are as it is. GST invoice as per Chapter VII of CGST act rwr GST-TAX-INVOICE-CREDIT-AND-DEBIT-NOTES-Final-Rules-18-5-2017.
Dated: 18-7-2017
Reply By ROHIT GOEL as =
IGST is to be paid against import of Goods but the Clearing agents are depositing IGST under BCD head. Whether payment window under IGST is open?
Dated: 19-7-2017
Scholarly articles for knowledg
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