An attempt is made to identify the Differential Treatment in GST law with respect to Export of Goods with or without payment of GST
Why Differential Treatment:
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Sl. No.
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Area of difference
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Refund of ITC on Export of Goods without payment of Tax
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Refund of ITC on Export of Goods with payment of Tax
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1.
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LUT/Bond
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Required and to file FORM GST RFD-11
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Not required
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2.
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Refund Application
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Application in Form GST RFD-01
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S B is deemed to be refund application
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3.
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Filing of declarations and undertakings
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S. 16(2)(c), S. 42(2)
r. 91(1), r.96B, etc..
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No such declarations and undertakings
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4.
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Turnover of zero-rated supply of goods
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Value restricted to 1.5 times the value of like goods domestically supplied
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No such restriction
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5.
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Turnover of Zero rated supplies - Invoice Value Vs S B Value
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Lower of Invoice value or SB value
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Invoice Value
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6.
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ITC on Capital Goods
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Not allowed as refund
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Allowed as refund !
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7.
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Realisation of export proceeds
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If not realised - Recovery of refund in terms of rule 96B
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If not realised - ………….?
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Whereas, same exporter may have both scenarios and in both the cases goods are exported and convertible foreign exchange is earned But for refund of GST - Why Differential Treatment !
You are welcomed to add or correct …
