Impact of GST implementation on Advance Authorization scheme for exporters in India.

 

Duty exemption for Exporter before GST regime in India:

In our example Mr. James, an exporter can avail duty exemption to import buttons with Advance Authorization Scheme issued by Director General of Foreign Trade. So he does not need to pay any import duty.

Impact of GST implementation on Advance Authorization scheme for exporters in IndiaDuty exemption for exporter after GST implementation and before

Now, exporters in India are worried about the exemption of import duty benefits. After introduction of GST in India, whether exporter can import materials for export purpose without paying import duty or they have to pay import duty when importing and wait for refund after realization of export proceeds. For example: If Mr. James source buttons to make Leather Jackets to export by importing, whether he will get total exemption on import duty or he has to pay import duty while taking delivery of import cargo from customs or he has to pay import duty and wait till realization of his export invoice.


As per present GST Law, exporters are worried, whether they can avail only basic customs duty exemption at the time import. After introduction of GST, if an exporter need to pay import duty and wait to get refund after realization of export proceeds, GST regime may not be comfortable for exporters in India, as a good amount of money will get blocked there by shortage of working capital. This inconvenience is against the slogan “No exporters shall suffer for want of money for exports”. As per my suggestion, if government has no other options, authorized bank of exporter has to provide zero rated packing credit loan to exporters to make up such shortfall of working capital equivalent to import duty amount which exporter pays at the time of import.

In our example above, before GST regime, Mr. James can pay full amount of duty locally and source out buttons as domestic supply. In turn, he can utilize import authorization to get import duty exemption. After introduction of GST in India, the exporters in India are anxious, whether such facility is available.

Click here to know GST rate on Goods and Services

GST Exemption list of goods and services

Find HSN number or Service tariff code for GST

GST registration guidelines

Indian GST Laws

How to export your goods?

How to calculate CBM in LCL export shipments:

How to calculate chargeable weight under airfreight in exports?

How to check the time of contract on high sea sale transaction?

How to Choose a product for export business

How to cover the risk of Cargo loss or damage

How to customs clear Cargo arrived in a port where in import license obtained for another port

How to differentiate BL and HBL?

How to differentiate CPT and DAP in shipping terms

How to divert cargo from one port to another?

How to file bill of entry Manually. What is manual filing of Import Documents?

How to file Bill of Entry on line? What is called Noting in bill of entry

How to get exemption of Sales Tax under exports.

What happens if overseas buyer not paid export bills discounted.

What happens if proper tracking of goods not effected in export import business?

What happens if your buyer rejects cargo? What are the major problems if consignee not taken delivery of cargo?

How to get export order from foreign buyers?

How to get RCMC from Export Promotion Councils

How to hide invoice value of original contract under high sea sale transactions

How to know the quality, quantity or contents of goods before import customs clearance

How to know volume of LCL cargo if not measured at factory

Transferability of Bill of Lading

Transhipment - A redefinition

Travelers to India under import duty exemption, Frequently Asked Questions Part 2

Triangular export

Nil rate of GST on purchase of cattle feed wheat bran

No GST on sale of Residues and waste from the food industries

Nil rate tariff of GST on sale of poultry feed

No need pay GST on sale of cattle feed supplement

Exempted GST on sale of cattle feed husk of pulses

No need pay GST on sale of cattle feed hay

No need to pay GST on sale of cattle feed grass

Zero percentage GST cattle feed de-oiled cake

No GST on purchase of cattle feed concentrates, additives

No GST on purchase of cattle feed concentrates, additives

Nil tariff GST on sale of cattle feed straw

Zero rate of GST on sale of Aquatic feed


Comments


Bala: Earlier we obtained advance authorization licence and supplied to 100 % EOU units. After GST is this continue? If continuous what are the proof of export documents we have to get from 100% eou.

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers