Today we will discuss the GST on export of goods. how it is levied at the time of sale and how we can claim the refund of input tax credit. Also procedure to take input tax credit for sale of goods on local and exports both.
Taxation at the time of Export Sale
There are two methods an exporter can follow
First – Sale the goods and levied GST rate mentioned in that item and take the input credit of the item and apply for the refund on balance credit.
Second – Sale the goods with letter of undertaking . In that case no need to pay the Output tax at the time of sale.
Refund of Input tax credit
An exporter can claim the input tax credit by preparing and submitting the documents to GST office.
Documents Required for Refund on Exports
Copy of GST Return
All bill on which input tax credit claim
Shipping bill as a proof of exports.
Chartered Accountant letter that burden of tax has not been passed.
Input used in Sale of Export and Local both
If an exporter purchased raw material that is used in export as well as local sale than the question arise can he claim the 100% credit on the inputs. As per our opinion the answer is Yes.
As export is an Zero rated supply not an exempted goods. If there is an exempted goods than input credit will be allowed as per Rule 42 and 43 of CGST Act.
Is there any Duty Drawback in case of Exports
There is no Duty drawback in GST on export sale except in the following situation –
(1)The customs duty paid on imported inputs
(2)Central excise paid on certain petroleum or tobacco products used as inputs or fuel for captive power generation
