Admin[By Shaleen Shah (Partner), VNCA]
An exporter is eligible for Refund of IGST paid at the time of export. The shipping bill filed by an exporter with customs authorities is considered to be an application for refund of IGST paid on the goods exported out of India. Exporters then file export details viz. shipping bill and tax paid GST invoice in their GST Return GSTR-1 for the respective month which in turn is transmitted electronically to the Customs Portal and refund is processed.
Considering the extensions in time limit for filing GSTR-1 for August onwards, amendments have been made whereby exporters can file export details in Form GSTR-1E on the GST Portal even if GSTR-1 for the month is not enabled. Government shall process the refund based on the said form. Exporters can file the export details for the months of August, September & subsequent months (till further notified) if GSTR-3B has been filed for the said months.
In another development, the GST Portal has enabled the refund application Form GST RFD-01 for Refund of ITC on Export of Goods & Services without Payment of Integrated Tax. The amount eligible for refund has to be computed as per the GST Rules.
As recommended by the GST Council, following supplies were recently notified as `Deemed Exports’:
a. Supply of goods by a registered person against Advance Authorisation (AA)
b. Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation (EPCG)
c. Supply of goods by a registered person to Export Oriented Unit (EOU)
d. Supply of gold by a bank or notified PSU against Advance Authorisation.
Procedure has been notified for supply of goods by a registered person to EOU / EHTP / STP / BTP units which qualify as `deemed exports’. Refund of tax paid on such supplies can be claimed either by the recipient or supplier of such supplies. Prescribed procedure & safeguards will have to be followed.
In earlier relief measures, the benefit to export/supply to SEZ without payment of IGST under a Letter of Undertaking (LUT) in place of a Bond was extended to all exporters & suppliers to SEZ subject to conditions and safeguards.
Moreover, relief was given to merchant exporters to remove cash flow requirement for payment of tax and subsequent claim of refund. As notified, supply of taxable goods to a merchant exporter shall be done @ 0.1% in case of inter-state supplies. Intra-state supplies shall be done @ 0.05% as CGST and 0.05% as SGST. Prescribed procedure will have to be followed.
