IGST on direct export of goods

[MohanLal tiwari]

Dear All,

We are manufacturing and supplying our products to Indian customers including Railways & defence and to foreign buyers. kindly clarify for the following issues:

1. Whether we can export the goods on payment of applicable IGST and get refund.

2. The ITC taken on inputs for manufacturing of goods for exports can be used for payment / adjustment of GST payable on other goods / service supplies.

3. Some of our products are falling under 8607 GST @ 5% but all the inputs for the same are procured @18%. Accordingly the ITC will get accumulated. Please advise what are the options to utilize the accumulated ITC.

[Kishan Barai]

You can import the goods and pay IGST (import duty) from your excess CGST & SGST proportion

[MohanLal tiwari]

Mr Barai,

Please go through the query again, it is for export of goods not import.

[DR.MARIAPPAN GOVINDARAJAN]

Under IGST Act export is considered as zero rated supply. Therefore you can get the refund of IGST paid by you.

The ITC taken on inputs may be CGST/SGST. This cannot be adjusted against integrated tax.

ITC accumulation cannot be adjusted against future payment. Refund can be obtained from the Department on the month itself.

[Kishan Barai]

Great Reply by Sir,

You can get ITC only if you have purchase bill for raw materials in IGST, if your Supplier is local then also you need to avail bill with IGST "Supply ment for Exports" & you will get 90% refund in 6 to 10 days after filing of Shipping Bill for exports where LEO number is generated & 10% after proper scrutiny.

Exports under GST are Zero Rated.

[MohanLal tiwari]

Dear Panelists,'

We have exported goods on payment of IGST during July to Nov'17 and furnished required details of shipping bill etc on GST portal while submitting GTR-1. Though it is declared repeatedly for refund but till date we have not received a single refund.

Kindly advise how to expedite the the refunds of IGST paid on Export of goods.

AI Summary

IGST on exports: zero-rated treatment allows refund claims of IGST paid, while CGST/SGST ITC cannot offset IGST liabilities. Exports are treated as zero-rated supply, allowing refund claims of IGST paid on exported goods. ITC recorded as CGST/SGST cannot be adjusted against IGST liabilities, producing ITC accumulation that is to be remedied by claiming refunds. Exporters must furnish shipping bill and portal documentation when seeking IGST refunds, and contributors report procedural stages for refund processing alongside delays in actual disbursement.