GST REFUND IN EXPORTS - HOW GST WORKS IN EXPORT?
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- เผยแพร่เมื่อ 22 ส.ค. 2024
- GST Refund In case of Export of goods:
There are 3 ways to export goods in GST.
1) Export without payment of GST Tax (Without payment of IGST) -LUT Model
2) Export with payment of GST Tax (Without payment of IGST) - Pay full GST get Refund of Full GST model - Payment model
3) 0.1% SCHEME FOR MERCHANT EXPORTER SCHEME
1. EXPORT WITHOUT PAYMENT OF TAX (LUT)
Under this model you don't pay any GST on export of goods because export is Zero Rated Supply. This means that government will not charge an GST on export of goods or services. And if any GST have already been charged in earlier stages of purchase chain then it will refunded to the person who ultimately export the goods or services. This means that at the time of export sale of goods in international market, you don't have to pay any GST on export sales transaction and hencewhatever GST you have paid when you purchased the goods from domestic market remains unutilised or unsed. This unused GST paid at the time of purcahse is called Unutilized ITC of GST and you will get refund of such untilized GST. It was unutilized because government has not charged any GST on export sales transaction and on domestic purchase transaction you must have paid GST to your supplier at the time of buying the goods. You get the credit in of this GST paid at the time of purchase of goods if your supplier
(person from whom you purchase the goods) has paid this amount to government honestly. This credit is called input tax credit.or ITC. This ITC remains unutilized because you don't have to pay GST at the time of export sales.
Now you can get the refund of this unutilized ( unused ) ITC by applying online on GST portal in form RFD 01 online.
For refund of tax in case of export without payment of tax, LUT model, we charge seperate professional fees.
Seperate procedure including statements, refund calculations, annexures and undertakings need to be prepared for which seperate fees is charged based on volume of transactions
2. Export of Goods under LUT but purchase of Goods at 0.1%
Here, At the time of purchase of goods, instead of paying full GST, we GST pay 0.1% only. The supplier will not charge the GST at full Rate (5%, 12 %, 18%, 28%), but he will charge nominal GST 0.1%. Merchant exporter is under obligation to export this goods within 90 days. Merchant exporter should mention the GST number and Tax invoice number of the supplier from whom he had purchased the said Goods. And eventually, he will also provide the shipping bill and EGM numner under which the said goods have been exported. But obviously, he can hide the buyer details in the shipping bill by scratching it out or hiding by whitener or just simply tear that part. Simple.
3. . . EXPORT WITH PAYMENT OF TAX (IGST)
As shipping bill itself is the application for Refund of tax paid, we just need to verify that all mandatory details of shipping bill are precisely entered in return, satisfying requirement of GST portal and ICEGATE portal, with a precondition that AD code and IFSC code is registered with customs.
In brief, there is no seperate procedure for Refund of Tax in case of Export with payment of tax.
We dont charge any seperate professional fees for Refund of Exports with payment of tax and the same is included in above service.
the registered supplier shall supply the goods to the registered recipient on a tax invoice;
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This is one of the best video I have seen in recent time on GST return. Very practical and very simple. Thank you very much for such valuable information.
Very helpful video..thank u so much
Really Mr shah is very knowledgeable and helping..
Fully described information very easily 😊
Wonderful explanation 👏
Very valuable information 🎉🎉
very knowledgeable video sir
😮😅😅😅😅
Very very excellent. Thank you Sirji, but i got a question..is best to call you tomorrow.
Sir,
Please reply to the below queries at the earliest.
(1)
If for exports-purpose, we purchase goods in the local/domestic market with payment of SGST+CGST / IGST to the local manufacturer then it'll be called as Exports of Goods with payment of IGST or Exports of Goods without payment of IGST ?
(2)
Exports of Goods/Services with payment of IGST
means in this IGST needs to be paid on ICEGATE / GST portal ? At which stage it's paid ?
Thanks.
reply to query number 2: igst to be paid on GSt portal while filing gst returns. but it will be refunded by icegate. for successful refund your ifsc code must be registered at the port from which you will export the goods and you should properly file the GSTR 1 and GSTR 3B.
GSTR1 -- exports to be shown in table 6A
GSTR 3B . 3.1(b) --zero rated supply
Reply to query number 1: you have both the options, when you buy the goods by paying full rate of GST. For example if you pay 18% GST on purchase then you can go either with payment of IGST (export with payment of IGST) or 0% GST on exports lag (which is called export under LUT).
but when you as a merchant exporter purchase goods at concessional rate of 0.1% GST, then you must go for export without payment of GST (known as export under LUT).
call eight zero zero zero zero two eight two five zero
Sir plz make video on how I fill firc and brc in bank
Sir export w/out payment IGST ke case me kya input kuch bhi claim nhi kar sakte or agar claim kar lia to kya hoga
Hi Kalp Ji. I have one more question related to bank realization. I exported one b2c product on June 2022, but submitted the documents to bank on March 2024 (i.e. after 21 months). Now in the bank realization certificate which I downloaded from DGFT, the "Date of Realization of Money By Bank" shows as June 2022 but "Bank Realization Certificate number is dated 19th March 2024. So which is the exact realization date?. Under FEMA we should submit export documents to bank within 15 months, but I submitted after that and bank has accepted it and did the realization. For this accumulated ITC, if I claim a refund from GST dept / customs dept, will it be a problem under 96B? This late realization of export proceeds was due to some B2C courier shipping bills not reflecting on RBI-EDPMS. I heard this is a common problem with many exporters. I had mailed icegate helpdesk and ECCS trade helpdesk and sent the courier shipping bill data in excel but nothing has been done from their side so far. This is again required for realization of some more courier shipping bill not reflecting on my bank trade portal.
8000028250
@@KalpShahGSTClasses Thanks calling.
Jab Nepal me service export karre, foreign exchange me billing zaroori hai kya?
Indian currency me Billing nhi kar sakte kya?
KAR SAKTE HO
To export against LUT - is LUT registration enough or do we need to register on the EEPC portal - RCMC . If the LUT number is enough then we just need to specify the LUT number on our export tax Invoice right?
to register with export promotion council compulsory when you buy the goods at 0.1% and sells under LUT i.e. without paying GST. For exporters who buy goods at 0.1%, it is compulsory for them to export under LUT, they cannot export with payment of IGST
but when you pay the full GST at the time of purchase of goods from local manufacturer or dealer, you have both the options either go under LUT or with payment of IGST. Here, RCMc is not compulsory. When you purchase the goods by paying full Gst on purchase and then export under LUT, RCMC (registration with export promotion council) is not mandatory.
@7:00
Hello Sir , Can we claim unutilised rcm input in gst refund..
Yes any input tax credit is input tax credit except blocked credit or for personal purposes
Sir me mango farmer agar me direct export karta hu toh muje igst pay karna padega ?
no
Hi Kalp. I have a good ITC positive balance in my account and have LUT for the current FY. Can I still issue export invoices with IGST collected which can be paid from my ledger balance and later claim auto refund of that IGST in monthly filing? This would reduce my positive ITC balance and it would get credited to my bank account within 60 days. But I have LUT for this current FY.
Yes this is the best scenario
In the same financial year you can export some orders under LUT AND OTHERS WITH PAYMENT OF IGST
It is legally allowed to send some export orders under LUT AND SOME WITH PAYMENT OF IGST. THIS WILL MAKE NATURAL SETOFF .
If you have taken lut then It is not compulsory to export all orders of the year under Lut only
@@KalpShahGSTClasses Ok. Thank you so much for your reply.
I am supplier of steel I buy the steel from 18% gst from holeseller and sell the goods to merchant exporter AT 0.1% tax . How to claim gst and refund to my bank account?
call 8000028250
Do we get 100% of gst refund which we paid to suppliers and export with LUT?
YES SURE THAT IS CALLED EXPORT UNDER LUT ADN REFUND OF GST PAID ON PURCHASE LAG
Sir can you please help. If someone export services and file GST return without payment of tax. and have accumulated ITC through purchase of capital goods. can we get refund of ITC of capital goods in case of export of services without payment of tax.
No. For export under LUT (EXPORT WITHOUT PAYMENT OF TAX) you cannot get refund of capital goods
Can we claim refund every month for GST paid on Air freight
YES