Procurement of Goods for Export with Payment of GST- Process

[Pradeep Kaushik]

Dear Sir/s,

Please share the process for Export under GST regime.

Earlier, there was no need to pay duties and taxes on the procurements for Export.

In this case, we have to provide ARE-1 and Proof of Export to our Supplier in India.

But, currently, our supplier is insisting to charge the IGST on the Supply.

It will make big impact on our cash flow.

Please suggest how to proceed without payment of IGST

[KASTURI SETHI]

Even now under GST, goods can be exported without payment of GST. Board has issued circulars No.4/4/2017-GST dated 7.7.17 and 2/2/17-GST dated 4.7.17 which are available on TMI.

[Nash Industries I Pvt Ltd]

Under the GST, the GST is payable on all procurements Credit can be availed. Can claim refund of the GST paid on the inputs if exported under bond or refund of IGST paid on the goods exported, if on rebate.

No ARE-1 under GST. GST invoice is the document. 90% of the refund claim is paid within 60 days of submission of claim and the balance 10% after scrutiny.

Regards

S.Ramaswamy

AI Summary

Export under GST allows zero-rated supplies; suppliers may charge IGST but exporter can claim refund or bond. Export transactions are zero-rated under GST: exporters may export under bond/letter of undertaking to avoid payment of tax at source or pay IGST and claim refund. The GST invoice serves as the export document in place of ARE-1. Exporters can claim input tax credit on procurements and seek refund of GST/IGST on exports; refund claims are processed promptly with a portion paid on submission and the remainder released after scrutiny.