GST on Export of goods

[Jayant Gokahle]

We are a manufacturing company with Excise and VAT Regn. Now we have registered under GST also. We export goods as a trader also.

When we will buy goods post 01 Jul 17, for export as a trader, our supplier will charge us GST at applicable rate. To export these goods, can we take credit in our GST account and export the goods without paying GST as export is exempt. or

We have to claim refund of GST paid on purchased goods after submitting export documents.

[Himansu Sekhar]

In my view you can take credit and claim refund. The refund procedure is simplified

[Rajagopalan Ranganathan]

Sir,

Procedures for export without payment of GST are yet to be notified. As of now exports will be zero rated. However procedural formalities for exporting without payment of GST are yet to be notified. We have to wait till fresh Foreign Trade Policy is notified in tune with GST.

[KASTURI SETHI]

Frequent meetings of GST council before 1.7.17 has paved way for more amendments. We have no option but to wait for finalisation of GST tariff and rules.

In such a scenario no advice is fool proof.

[Himansu Sekhar]

You are correct sir

AI Summary

Zero-rated exports: input tax credit may be used and refunded, pending notification of procedures for export without payment.
Exports are treated as zero-rated, allowing utilisation of input tax credit and claiming refund of tax paid; however, procedural rules for exporting without payment of tax and related formalities are not yet notified, so exporters must await final tariff, rules and Foreign Trade Policy alignment while following available refund mechanisms and documentation requirements.