GST – Exports

Qustion. Have the procedures relating to exports by manufacturer exporters been simplified in GST regime?

Answer: Yes. The procedures relating to export have been simplified so as to do away with the paper work and intervention of the department at various stages of export.

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The salient features of the scheme of export under GST regime are as follows:

• The goods and services can be exported either on payment of IGST which can be claimed as refund after the goods have been exported, or under bond or Letter of Undertaking (LUT) without payment of IGST.

• In case of goods and services exported under bond or LUT, the exporter can claim refund of accumulated ITC on account of export.

• In case of goods the shipping bill is the only document required to be filed with the Customs for making exports. Requirement of filing the ARE 1/ARE 2 has been
done away with.

• The supplies made for export are to be made under self-sealing and self-certification without any intervention of the departmental officer.

• The shipping bill filed with the Customs is treated as an application for refund of IGST and shall be deemed to have been filed after submission of export general manifest and furnishing of a valid return in Form GSTR-3 by the applicant.

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The concept of merchant or manufacturer exporter would become irrelevant under the GST regime. The procedure in respect of the supplies made for export is same for both merchant exporter and a manufacturer exporter.

Under the GST Law, export of goods or services has been treated as:

• inter-State supply and covered under the IGST Act.

• ‘zero rated supply’ i.e. the goods or services exported shall be relieved of GST levied upon them either at the input stage or at the final product stage.

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No exemption under GST Law is provided. The EXIM scrips under the export incentive schemes of chapter 3 of FTP (for example MEIS and SEIS) can be utilised only for payment of Customs duties or additional duties of Customs, on items not covered by GST, at the time of import. The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess. Similarly, scrips cannot be used for payment of CGST, SGST or IGST for domestic procurements.

Note: Reference to CGST Act, 2017 includes reference to SGST Act, 2017 and UTGST Act, 2017 also.


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