Impact of GST on exports in India

 

Exports and GST in India

 

Impact of GST on imports in India

Applicable import duty after GST implantation

How to calculate IGST under imports?

Changes in IEC after GST

Linking IEC with GSTIN in customs

Import under EPCG after GST

GST on imports by EOUs and SEZs

Changes of operation of SEZ

Does CVD exists under project imports?

Baggage clearance after GST implementation

Refund of SAD paid on imports

How to claim ITC under imports?

Procedures to claim Drawback after GST implantation

How to claim IGST refund on exports?

Export procedure changes after GST implementation

Factory stuffing procedures after GST implementation

Import of goods attracts IGST but not CVD under GST regime

Import goods attracts IGST and CVD under GST regime

Import Goods attract IGST, CVD and Compensation Cess under GST regime

Safeguard duty and Anti-dumping duty after GST implementation


No doubt, GST regime can change Indian economy a lot in coming years. However, anxiety for exporters also arises on the impact expected after introduction of GST in India to Export sectors especially the changes on export incentives and other export benefit schemes

Impact of GST on exports in India
As we know, for the purpose of exporting, exporters procure materials either locally or by importing. The products thus sourced are used either for manufacture of export products or for direct export purpose.


What is the present system of tax exemption obtained for materials sourced for export purpose?


The duties against material sourced for export purpose is exempted or refunded.


When implementing GST, the exporters in India are anxious, whether they have to pay all duties and taxes when procuring indigenous goods and need to apply for refund later after realization of export proceeds. If so, a good amount of money gets blocked which adversely affect working capital of exporters.


Let’s discuss with an example below:


Mr. James is a Leather jacket exporter in Kanpur, Uttar Pradesh. He has obtained a foreign order from New York to supply 400 pieces of leather jackets at USD 200.00 per piece. For the purpose of manufacturing Jackets, he has to procure buttons either locally or by import.


What are the current facilities available and what happens after GST regime?


As informed above, Mr. James can either import or can source locally, the required buttons to make finished products. Assume, the import duty works out to 32% on CIF value of goods (Assessable value of goods). Say Basic customs duty, excise duty, additional duties and other cesses if any.

 

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 obtain waiver on detention/ demurrage on imported goods/container from Shipping company/CFS

How to open an LC? Procedures to open a Letter of Credit

How to overcome credit risk in export business?

How to overcome Negative thoughts in export business

How to prepare an Export Invoice. Contents of Export commercial Invoice:

How to prepare an Export Packing list. Contents of Export Packing list

How to prepare Purchase order

Transferability of Bill of Lading

Transhipment - A redefinition 

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

Triangular export

Triangular shipment

Types of Insurance Documents. 

 

How to protect parties each other in triangular exports

How to re-construct EP copy of shipping bill

How to send export samples to foreign buyer? Tips to send samples to foreign buyer

How to set up an export import firm in India

What is VACIS exam in US import customs clearance

When can an exporter release bill of lading from shipping company?

When does exporter get EP copy of shipping bill after customs clearance

 

How to solve exchange rate variation in export business:

How to surrender ‘HBL’ House Bill of Lading

How transshipment bill of lading works?

 

Is letter of credit safe mode of payment?

IGM amendment (Import General Manifest Amendment)

Import clearance under high sea sales

Import customs clearance procedures

Import under EPCG after GST

GST on imports by EOUs and SEZs

Changes of operation of SEZ

Does CVD exists under project imports?

Baggage clearance after GST implementation

4 Conditions when applying for refund of Input Tax Credit (ITC) under GST
Difference between types of goods and services and types of GST
4 types of Goods and Services in India for GST rate
Difference between IGST on International goods and IGST on domestic goods.

How is IGST calculated under Imports?

How is IGST rate on imports treated?

GST and e-Commerce Business, FAQ

Definition of E-Commerce under GST

TDS under GST, Frequently Asked Questions

Revised GST rate on Sulphur recovered as by-product in refining of crude oil

Revised GST rate on Marble and travertine, other than blocks

Revised GST rate on Granite, other than blocks

Revised GST rate on Uranium Ore Concentrate

 


Comments


Syed moinuddin: Export order for granite tile was conformed in month of June.with out tax. But the manufacturer and processer has add GST 28%.IAM EXPORTING THE GRANITES TILES HOW AVOID THIS GST IN EXPORT.BEFORE we used togive H-form before.iam purchasing the material form factory and exporting.where there is Get for material I purchase for export.kindly guide .mobile no :7845865002

Syed moinuddin: Export order for granite tile was conformed in month of June.with out tax. But the manufacturer and processer has add GST 28%.IAM EXPORTING THE GRANITES TILES HOW AVOID THIS GST IN EXPORT.BEFORE we used togive H-form before.iam purchasing the material form factory and exporting.where there is Get for material I purchase for export.kindly guide .mobile no :7845865002

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