GST on goods sent outside India under sale or approval basis

GST Refund

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

27/07/2019

ITeS and backend support service, Intermediary or not

Exports of Goods and Services

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

24/07/2019

GST Refund

Can IGST Refund be seek, where Higher drawback has been claimed on Exports

Gujarat High Court rules that claim of higher rate of duty drawback is not a valid reason for rejection of IGST refund on exports Unreasonable delays in grant of refund of Integrated Goods and Services Tax (‘IGST’) has impacted several exporters in the recent past. There have been several instances where taxpayers had to resort to litigation in the High Court in order to obtain specific relief and direction for grant of IGST refunds and also in cases of IGST Refund where Higher drawback claimed on Exports. Duty drawback is one of the export incentives provided by the Government of

17/07/2019

Circulars

CBIC introduces additional safeguards for verification of IGST refunds on exports with payment of tax

In order to make India’s exports competitive in the global markets and in line with the principles of international trade and commerce of zero-rating exports, the GST and customs laws have provisions on place for grant of refunds in case of input taxes paid on exported goods. On similar lines, the GST law also has an alternative route to benefit the exporters – ‘export of goods with payment of taxes’, wherein the taxes paid on sale would be refunded. In line with this initiative, the Central Board of Indirect Taxes and Customs (‘CBIC’) has brought in several exporter friendly and

18/06/2019

Exports of Goods and Services

Once the High court order issues, GST officer bound to accept manual GST refund application

In the recent judgement, Delhi High court made it clear that once order of the High Court was issued, the GST officer was bound by the same to accept manual GST refund application from the taxpayer. Delay in processing of refund claims and grant on provisional refund within the statutory timelines have resulted in severe working capital and compliance issues for taxpayers. Often, taxpayers have approached courts to obtain directions from the courts in order to expedite the refunds. Recently, the Delhi High Court in the case of GSI Products and AC Impex vs. Union of India and PC Universal

12/06/2019

GST Refund

Input tax credit of rejected refund amount can be taken manually by taxpayer if not recredit by tax authorities

Where rejection of refund claim by the GST authorities, the rejected ITC should be recredit to Input tax credit ledger of taxpayer for utilisation. However Since there is no mechanism to do so, this resulted in certain difficulties to taxpayers in cases where the existing Input Tax Credit (‘ITC’) was not recredited by tax authorities for utilisation. In this case, the Gujrat High Court (‘HC’) has provided valuable guidance on the subject in the case of M/s. Garden Silk Mills Ltd. Vs. Union of India (R/Spl Civil Appl No. 7397 Of 2018) vide order dated 11 April 2019. It has

12/06/2019

Goods and Service Tax

Revised formats for Shipping Bill

Every exporter has to undergo and comply with certain administrative and compliance requirements at the time of export of goods from India to another country. The requirements include submission of applications, acquire licenses, furnish certificates/ bonds, payment of taxes/ duties, valuation of goods etc. One of the critical and important ingredient in the whole process is the ‘Shipping Bill’. Shipping Bill is a statistical and documentary evidence of exporting goods from India, which also certified by the Customs authorities. The Shipping Bill is also an important document for other compliances and actions like realisation of export proceeds, application for tax

10/04/2019

GST Refund

GST on supplies by Merchant Exporter and Refund to Merchant exporter

Recently CBIC has released a clarification on how merchant exporter can claim Refund of accumulated ITC to Merchant Exporter where supplies have been made by him taking benefits to vide notification no. 40/2017-Central Tax (Rate), Dated: October 23, 2017 & Notification No. 41/2017-Integrated Tax (Rate), dated the 23rd October, 2017 1. GST on supplies by Merchant Exporter Central Board of Indirect Taxes (“CBIC” or “Department”) has exempted supplies to merchant exporters from Goods and Service Tax (“GST”) leviable in excess of 0.10% vide notification no. 40/2017-Central Tax (Rate), Dated: October 23, 2017 & Notification No. 41/2017-Integrated Tax (Rate), dated the

10/04/2019

GST treatment on export of services partly rendered by third parties outside India

There are two services transactions taking place:

Export of services by the exporter to service recipient outside India for the full contract value
Import of services by the exporter from service provider (foreign outsourced contractor) located outside India with respect to the outsourced portion of the contract.

09/01/2019

Refund of accumulated Input Tax Credit of Compensation Cess

Exports of Goods and Services

Refund of accumulated Input Tax Credit of Compensation Cess

Registered person making export of goods under LUT shall be eligible for claiming the refund of compensation cess paid on inputs used for making such supplies

09/01/2019

Archives

GST on goods sent outside India under sale or approval basis

ITeS and backend support service, Intermediary or not

Can IGST Refund be seek, where Higher drawback has been claimed on Exports

CBIC introduces additional safeguards for verification of IGST refunds on exports with payment of tax

Once the High court order issues, GST officer bound to accept manual GST refund application

Input tax credit of rejected refund amount can be taken manually by taxpayer if not recredit by tax authorities

Revised formats for Shipping Bill

GST on supplies by Merchant Exporter and Refund to Merchant exporter

GST treatment on export of services partly rendered by third parties outside India

Refund of accumulated Input Tax Credit of Compensation Cess

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