Exports of Goods and Services

Service provided by subsidiary/ sister concern/ group concern located in India to Foreign Company located outside India is considered as Export of services
Exports of Goods and Services
CA. Sachin Jindal

Service provided by subsidiary/ sister concern/ group concern located in India to Foreign Company located outside India is considered as Export

A lot of benefits are provided for “Export” of goods or services. However, various conditions are required to be fulfilled to qualify a transaction as “Export”. Similarly, to qualify a supply of service as “Export of service”, five conditions are provided under Section 2(6) of IGST Act, 2017.  However, one of the conditions given in clause (v) of Section 2(6) of IGST Act is always covered with lots of ambiguity. Considering the representations received, GST Council in 45th GST Council meeting recommended CBIC to issue necessary clarification around condition (v) of Section 2(6) of IGST Act, 2017. Therefore, CBIC issued

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Circular can not prevail over the statute, HC allows IGST refund where higher rate of drawback claimed
GST Refund
CA. Sachin Jindal

Circular can not prevail over the statute, HC allows IGST refund where higher rate of drawback claimed

Several goods exporters across the country could not avail of their ITC refund for a period of July 17 to September 17. The reason being the GST refund where higher drawback claimed a higher rate of drawback, this has been a major concern for the whole exporter community. Already many have faced losses as the GST department rejected the refund claim relying on the 37/2018 circular. Several cases have been registered by exporters on the same. In one of such cases, the Madras High Court has given their verdict in favour of the exporter. In the case of M/S. PRECOT

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Processing of GST refund, where refund application allocated to wrong tax authority
Circulars
CA. Sachin Jindal

Processing of GST refund, where refund application wrongly allocated

CBIC clarifications that processing of GST refund should not be held up and processed by authority where the application has been wrongly allocated by the system. The Central Board of Indirect Taxes and Customs (‘CBIC’) vide Circular No. 104/23/2019-GST dated 28 June 2019 has clarified the authority who is required for Processing GST refund wrongly allocated applications of taxpayers in cases of incorrect mapping. The division of taxpayer base between the Centre and States to ensure a Single Interface under GST is critical to ensure the smooth and seamless flow of business operations.  1. Issues The GST refund applications filed

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GST on goods sent outside India under sale or approval basis
GST Refund
CA. Sachin Jindal

GST on goods sent outside India under sale or approval basis

CBIC clarifies on taxability of goods sent/ taken out of India for exhibition or on consignment basis for export promotion Indian exporters engage in several business promotion activities outside India in order to expand their outreach globally and increase volumes. Certain activities may require physically showcasing the goods to the potential buyers in order to strike deals and finalise sale orders. In this connection, the goods would have to be taken outside India for demonstration to the potential buyers either directly in exhibitions, trade fairs, business congregations, industry meets etc. or indirectly through distributors/ agents on consignment basis. The goods

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ITeS and backend support service, Intermediary or not
Exports of Goods and Services
CA. Kapil Mittal

ITeS and backend support service, Intermediary or not

Supplier of ITes services will not be covered under the provision of Intermediary and quality for export of services however provide of certain backend support services to foreign customer will fall under the definition of intermediary and not qualified for export benefits under GST The Indian ITeS industry generates significant foreign exchange for India and is one of the emerging hubs of the world.  Nevertheless, the Indian ITeS industry has been facing significant competition from its Asian counterparts like Philippines, Vietnam etc.  In this context, the Government of India has provided various export incentives to make Indian ites backend support

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