Question 19 - Today under VAT/CST merchant exporters can purchase goods without payment of tax on furnishing of a declaration form. Will this system be there in GST?
FAQ on GST dated 21.9.2016 based on Draft Model GST Chapter 14 Refunds
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GST purchase-on-payment required; exporters must claim refund of accumulated input tax credit instead of tax-free purchases. GST removes the VAT/CST facility allowing merchant exporters to purchase goods tax-free on a declaration. Merchant exporters must purchase goods upon payment of tax and seek relief through the input tax credit mechanism and refund of the accumulated input tax credit.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
GST purchase-on-payment required; exporters must claim refund of accumulated input tax credit instead of tax-free purchases.
GST removes the VAT/CST facility allowing merchant exporters to purchase goods tax-free on a declaration. Merchant exporters must purchase goods upon payment of tax and seek relief through the input tax credit mechanism and refund of the accumulated input tax credit.
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