Goods and Services Tax – GST – By: – Ankush Sachdeva – Dated:- 26-9-2017 – India s exports sprouted at its swift pace in these recent years by 4.6% to $ 284.55 billion during the financial year 2016-17, regardless of the demonetisation ferry that actually decelerate domestic economic activity since November. In March, exports had risen to a hoop from 26.6% to $28.23 billion after clocking a 16.5% jump in February, government surveys also showed that shipment of petroleum products jumped by 70% while engineering goods were up by 48%. India s rank is 19th out of 30 top exporters worldwide shows the predominance of our export industry. That is why the impact of GST on Export industry is very noteworthy. What is GST In simple words, we can say that GST is a tax that is levied on the consumption that is enforced on manufacture sale and consumption of goods & services at a national level. This kind of tax will remain same for all indirect tax levied by state and central government. It i
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numerous taxes under the current system of tax. The prerequisite of input tax credit will be accessible to exporters even in the case of state taxes (SGST), which is basically not available to the exporters under the previous tax regime. In other words, one can say that, an input tax credit explicit that while paying tax on the output, one can accentuate the tax that has already been paid on inputs. Accordingly, one does not pay the same tax twice and alternative he can pay only the amount of tax on the value addition done. This consideration by the government will bring down the costs of inputs and the amount of taxes paid by the exporters. Ultimately this will reduce costs and act as an incentive for the exporters. Spectacular benefits to the exporters: One of the major benefit to the exporters is that by the incorporation of Central and State taxes in GST with intact set-off on input goods and services and curtailing out of Central Sales Tax (CST) will diminish the cost of locally
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d to increased benefits to the exporters. Looking Towards the duty drawback scheme As far as the duty drawback scheme is concerned, the major advantage of this scheme is that the exporters can easily get the refund of the customs and excise duties that are paid on the imported items. The GST legislation has specified the limitation on some of the imported items. So, inference can be drawn that you will get refund of the taxes paid on both imported as well as domestic inputs. This will ultimately benefit the small exporters who are placed in the remote areas where availability of raw material become a headache for these traders. Zero GST rate on exports This factor will impact the industry in a constructive mode. The complaints of exporters have been meticulously handled, and the aggregate impact of these measures is going to fabricate Indian exports more competitive in the international markets, and give a jostle to the export business in India. IMPACT ON IMPORTS after introduction of
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able after complying with rules under the Indian law. Number of forms to present to get excise tax and sales or VAT refunded There are four different kinds of forms that are required to be submitted for the refund of the excise and sales tax and they are: – C-Form F-Form H-Form ARE 1- Form Forms required under GST regime of tax for the refund on exports ARE 1- Form is a form that is submitted to the concerned department for the refund of imports but not it has been removed after the introduction of GST except in cases of commodities to which provisions of Central Excise Act would continue to be applicable. As discussed earlier that after implementation of GST regime exports would be reckoned at zero-rated supply. Any person asking for the GST refund on exports have the following options namely: (a) Any person can provide goods or services under any Undertaking or bond with such conditions as may be prescribed in the legislation, without payment of integrated tax and can hold refund of
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