MEIS licenses

[Kusalava InternationalLimited]

What is the Rate of Tax on Sale of intangible Items like MEIS licenses and others from export incentive scheme.

[Kishan Barai]

No Tax on transferring MEIS license to other Importer / Exporter as it is done online but MEIS Broker do charge for their services, for those services charge 18% would be attracted

[MUKUND THAKKAR]

please check your items under which items you had obtain MEIS and charged GST accordingly for sales of MEIS.

[Guest]

The reply was "please check your items under which items you had obtain MEIS and charged GST accordingly for sales of MEIS."

If we export "GST Exempted Goods" then there will not be any tax

and if we export GST 5% rated Goods" then there will be 5% GST:

Is this the correct interpretation ?

[Guest]

GST Rate on MEIS might be 12% same is not clear yet.

Read this article it might help you.

http://www.business-standard.com/article/economy-policy/sale-of-scrips-under-export-promotion-schemes-to-attract-12-gst-117080400040_1.html

[Ganeshan Kalyani]

Duty Credit Scrips fall under HSN 4907 attracting GST@NIL , as given under Notification no. 2/2017-CTR dated 28.06.2017 as updated from time to time. Thanks.

AI Summary

GST treatment of MEIS licences depends on classification; scrip transfers may be nil-rated while brokerage services are taxable. GST treatment of transfers of MEIS scrips depends on classification and the nature of the supply: electronic transfer may not attract GST, brokerage services for transfers are taxable, and some commentary links taxability to the GST rate of the underlying exported goods. Notification-based classification has been cited to treat duty credit scrips under HSN 4907 as nil-rated under Notification No. 2/2017-CTR, but practitioner views on applicable rates remain mixed and require verification against current notifications.