Export tax to be @ 0.1 %

[Asked by Guest]

Any notification / Cirucular issued by the Central Government

[KASTURI SETHI]

See Notification No.41/17-IGST dated 23.10.17

Sir

Notification 41/2017 - IGST & 40/2017-CGST issued for EXPORT and it si applicable only for EXPORT. Pls confirm is it application for export to SEZ as well.?

Different peoples having different opinion.

1. This notification applicable for EXPORTS and Exports defined under Section 2(5) & 2(6) of IGST Act which is reproduced below.

(5) “export of goods” with its grammatical variations and cognate expressions,

means taking goods out of India to a place outside India;

(6) “export of services” means the supply of any service when,––

(i) the supplier of service is located in India;

(ii) the recipient of service is located outside India;

(iii) the place of supply of service is outside India;

(iv) the payment for such service has been received by the supplier of

service in convertible foreign exchange; and

(v) the supplier of service and the recipient of service are not merely

establishments of a distinct person in accordance with Explanation 1 in

section 8;

PLS NOTE this notification covered for EXPORTS and does not covered under the supplies under ZERO RATED ( EXPORT & SUPPLY TO SEZ) which is covered under Sec 16 of IGST act.

16. (1) “zero rated supply” means any of the following supplies of goods or services

or both, namely:––

(a) export of goods or services or both; or

(b) supply of goods or services or both to a Special Economic Zone developer

or a Special Economic Zone unit.

REQUEST TO CLARIFY THE SAME on legal validity

1. This notification applicable for EXPORTS and Exports defined under Section 2(5) & 2(6) of IGST Act which is reproduced below.

(5) “export of goods” with its grammatical variations and cognate expressions,

means taking goods out of India to a place outside India;

(6) “export of services” means the supply of any service when,––

(i) the supplier of service is located in India;

(ii) the recipient of service is located outside India;

(iii) the place of supply of service is outside India;

(iv) the payment for such service has been received by the supplier of

service in convertible foreign exchange; and

(v) the supplier of service and the recipient of service are not merely

establishments of a distinct person in accordance with Explanation 1 in

section 8;

PLS NOTE this notification covered for EXPORTS and does not covered under the supplies under ZERO RATED ( EXPORT & SUPPLY TO SEZ) which is covered under Sec 16 of IGST act.

16. (1) “zero rated supply” means any of the following supplies of goods or services

or both, namely:––

(a) export of goods or services or both; or

(b) supply of goods or services or both to a Special Economic Zone developer

or a Special Economic Zone unit.

REQUEST TO CLARIFY THE SAME on legal validity

[KASTURI SETHI]

Clearance to SEZ is export. No doubt.

[Kishan Barai]

PROCEDURE

The procedure for supplying goods to a merchant exporter shall be as follows:

Step 1: Placing an order by a merchant exporter and furnishing copy thereof to the Department

• Merchant exporter shall place an order on registered supplier for procuring goods at concessional rate

• Copy of the order shall also be provided to the jurisdictional tax officer of the registered supplier

Step 2: Supply of goods

For exporting the goods, the recipient shall

• directly move the said goods from supplier’s place to the port/inland container depot (ICD)/airport/land custom station (LCD) from where the said goods are to be exported; or

• directly move the said goods to a registered warehouse from where the said goods shall be move to the port/inland container depot (ICD)/airport/land custom station (LCD) from where the goods are to be exported

Option to aggregate the inward supplies:

• If merchant exporter intends to aggregate supplies from multiple suppliers and then export, he can move goods to registered warehouse and thereafter to the port/ICD/airport or LCD and then export therefrom

• In this case merchant exporter shall endorse receipt of goods on the tax invoice and also obtain an acknowledgement of receipt of goods from the warehouse operator

• The endorsed tax invoice and the acknowledgement of the warehouse operator shall be provided to the registered supplier as well as to the jurisdictional tax officer of such supplier

Step 3: Post-export compliance

Once the goods are exported, merchant exporter shall provide following documents to the supplier and the jurisdictional tax officer of the supplier:

• Copy of shipping bill/ Bill of export (incorporating supplier’s GSTIN)

• Tax invoice provided by supplier

• Export General Manifest/ Export report

CONDITIONS

Following are the conditions to be satisfied for availing benefit of concessional rate of GST on supply to a merchant exporter:

• Supplier shall supply goods under a tax invoice

• Goods must be exported within a period of 90 days from the date of issue of tax invoice by the supplier. The exemption would not be available to the supplier if the merchant exporter fails to export the said goods within a period of 90 days from the date of issue of tax invoice

• Merchant exporter shall indicate the GSTIN of the supplier and tax invoice number issued by the supplier in the shipping bill/ bill of export

• Merchant exporter must be registered with an Export Promotion Council or a Commodity Board recognized by the Department of Commerce

AI Summary

Zero rated supply: supplies to SEZs fall under zero-rated framework, distinct from export-only notifications.
Applicability of export notifications depends on the distinction between exports and zero rated supplies: exports are movements of goods or services outside India, whereas zero rated supply expressly includes exports and supplies to Special Economic Zone developers or units; goods cleared to SEZs are movements treated as export for transit, but fiscal treatment follows the zero-rated supply framework. Merchant exporters seeking concessional GST must follow invoice, movement, aggregation and post-export documentation requirements and satisfy conditions including export within ninety days and registration with a designated export body.