MERCHANT EXPORT UNDER GST
Query (Issue) Started By: – SURYAKANT MITHBAVKAR Dated:- 18-7-2017 Last Reply Date:- 12-10-2017 Goods and Services Tax – GST
Got 16 Replies
GST
We have manufacturing Pharma machinery registered under GST Act. We have doing export for our Manufacturing machinery under LUT also We are doing trading Export (Material procured under CT-1).
Now, under GST regime, there is no (B1 Bond) hence we can not issue CT-`1 for our trading purchases for export.
What is procedure to adopt related to Trading Export under GST .
Reply By Kishan Barai:
The Reply:
There is also procedure to export via Bond / LUT under GST but for Merchant Exporter customs / port are yet demanding Bank Guarantee
Reply By KASTURI SETHI:
The Reply:
Because Bank Guarantee makes revenue 100% safe. It is discretion of Custom Officer how he thinks revenue is safe.Bonds and LUTs do not provide complete safety.These lead to litigation only.
Reply By GOKARNESAN.S SUBRAMANIAN:
The Reply:
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the tax can be paid either out of credit earned for the purchase made from the manufacturer or pay by cash) and supply the goods for export through the port. While submitting Shipping Bill and Bill of Lading, "X" has to give his GSTN Register Number and the Invoice reference in the said documents.
If he is eligible for execution of Letter of Undertaking, he can also do so accordingly .
After completion of Export, the particulars of export will be automatically transferred from Customs Department to "Y" account maintained in GSTN portal. The duty paid amount will also be refunded by way of direct credit to "Y" Bank account.
If "Y" cleared the export goods under Bond without payment of duty, he can claim refund of input tax credit earned on the purchase of said goods from the manufacturer as rebate.
Please refer the following provisions of IGST Act
a) IGST Act section 2(5) for export definitions.
b) IGST Act section 10(a) and (b) for place of
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;X" has to raise local GST Invoice with CGST and SGST and supply the goods to "Y".
"Y" can take credit the CGST and SGST as per "X" Invoice
"Y" can raise an Export Invoice on the foreign buyer "Z" either with ZERO duty after executing Bond with the Jurisdictional Central or State Authorities OR "Y" can pay IGST on the export value ( here the tax can be paid either out of credit earned for the purchase made from the manufacturer or pay by cash) and supply the goods for export through the port. While submitting Shipping Bill and Bill of Lading, "Y" has to give his GSTN Register Number and the Invoice reference in the said documents.
If he is eligible for execution of Letter of Undertaking, he can also do so accordingly .
After completion of Export, the particulars of export will be automatically transferred from Customs Department to "Y" account maintained in GSTN portal. The duty paid amount will al
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Reply:
Dear kishanji,
How can x claim igst from y when it is an intra state supply. Only y will pay Igst. Please look into it as x will clear it as domestic supply.
Regards.
Himansu
Reply By Kishan Barai:
The Reply:
No Sir, I am talking about only exports not inter State , it's just an procedure for it
Thank You
Reply By Sudha Tallapaneni:
The Reply:
Dear Sir,
Please suggest , if the Manufacturer ( X seller) is in one state and (Y buy & export) is in other state and being in 100% EOU zone. Can ( Y) give CT bond to (X). Please suggest.
Reply By RAMJI RAMJI:
The Reply:
Thanks for the clarity provided on GST refunds on Exports.
We are a merchant exporter & the Pre-GST documentation helped us in procuring products from 100% EOU without payment of Excise & Customs Duty via CT1/ARE1 process. GST refund process is well understood. But there is no info on the refund of the Basic Customs Duty + Cesses (and is not under the GST Act) that will be charged by the 100% EOU . Do
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er export. He is the actual exporter under GST and he has to execute Bond Or LUT for export supply.
The Government has issued a circular on 11.7.2017 in which it is clarified all the issues on Merchant exporter transactions. The circular confirm my above views. Please see the below circular for more details.
Circular No. 5/5/2017 – GST F. No. 349/82/2017-GST
Government of India Ministry of Finance Department of Revenue
Central Board of Excise and Customs GST Policy Wing New Delhi,
Dated the 11th August, 2017
Regards
Gokarnesan. S
Advocate
12.8.2017
Reply By Suman Jhamb:
The Reply:
If we purchase goods from delhi from mr. X for export then x will charge igst in his invoice and we will take the credit of that igst, like normal other igst. In that case at the time if making the invoice if we are having bond then we will not charge igst in our invoice and if we are not having then we will mention gst amount in our invoice. For example if product value is usd 5000 +gst usd 600?
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