TaxTMI 
TaxTMI 
Dear Export,
Please suggest
Whether export will be on payment of tax or without payment of tax under GST Act.
Export under GST Act
05 Aug 2016 
10 Replies 
4496 Views Asked by
Zero-rated exports permit no tax and allow input tax credit, raising questions on refund versus export-under-bond procedures.
Exports are to be treated as zero-rated supply, meaning no tax on exported goods or services while input tax credit related to those exports is admissible; the Model GST allows refund of unutilized input tax credit for exports. Uncertainty remains whether exporters may elect to export without payment of tax or must pay and claim refund, and administrative rules (including invoice wording and certification requirements concerning passing on of tax benefits) are needed to clarify export-under-bond and refund procedures. (AI Summary)
Exports are to be treated as zero-rated supply, meaning no tax on exported goods or services while input tax credit related to those exports is admissible; the Model GST allows refund of unutilized input tax credit for exports. Uncertainty remains whether exporters may elect to export without payment of tax or must pay and claim refund, and administrative rules (including invoice wording and certification requirements concerning passing on of tax benefits) are needed to clarify export-under-bond and refund procedures. (AI Summary)