GST on Export of Goods – India


Is there any tax paid on export of goods under GST….? Do you have the knowledge of GST for Exporters…? GST is Goods and Service Tax which was launched on April 1, 2017 by Finance Minister of India. Gst has changed the tax system of India. The ultimate aim of GST is “One Nation and One Tax”. Here we are going to see the impact of GST on Export of Goods.exported-goods

Export of goods means sending goods from India to abroad. In India, so many people are doing Export Business.

GST on Export of Goods in India

In India, there is no GST on Export of Goods which means GST will not be levied on Export of Goods and Services. Under GST, export of goods from India is considered as “zero-rated supply”. So Export of Goods will attract 0% GST. It encourages many people to start Export Business. When many people start this business, it will increase the Foreign Capital.

After the implementation of GST, export of goods is considered as an interstate supply.

Exports – considered as “zero-rated supply” under GST

  1. Export of goods or services or both; or
  2. Export of goods or services or both to a Special Economic Zone Unit; or
  3. Export of goods or services or both to a Special Economic Zone Developer.

GST Registration for Exporters

Though there is no GST on export of goods, the exporter should get GST Registration. So GST Registration is mandatory to all exporters who are doing interstate supply. The exporters who do not have a GST registration number can clear their consignments by quoting PAN.

The exporters are required to pay IGST (Integrated Goods and Service Tax) under GST and then they can claim refunds.

Refund of IGST paid on export of goods under GST

Under GST, export of goods is considered as zero-rated supply. An exporter is eligible to claim refund of IGST paid on exports in following ways

  1. An exporter can pay the IGST (Integrated Goods and Service Tax) applicable on the goods at the time of export and claim refund of tax paid; or
  2. An exporter can export the goods without any tax under bond or letter of undertaking or any other prescribed procedure and claim refund of the taxes paid on inputs.

How to claim the refund of IGST paid on exported goods?

Procedure to file refund (IGST paid on exports) is outlined in the Refund Rules under GST.

  1. An export can file an application electronically through the Common Portal of GST to refund of IGST paid on exported goods; or through Facilitation Centre which is notified by the GST Commissioner.
  2. The shipping bill filed by an exporter will be considered as an application to refund IGST paid on export of goods.

For both option (1) and (2) An exporter should provide the details of GST invoice in the shipping bill.

So export of goods is a tax-free one under GST. So the people who want to start a business select export business. But Import of goods attracts  GST in India.

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