TMI BlogEXPORT (INCLUDING DEEMED EXPORT) OF GOODS / SERVICES UNDER CLAIM OF REBATE OR REFUND OF ACCUMULATED CREDIT OF TAX WHEN GOODS/SERVICES ARE EXPORTEDX X X X Extracts X X X X X X X X Extracts X X X X ..... e options available for neutralization of taxes paid on inputs used for export goods or taxes paid on finished goods exported by him which are delineated hereunder: a) Obtaining non duty paid inputs and exporting final product without payment of duty. b) Obtaining duty paid inputs and claiming refund of the same at the time of export of the finished goods without payment of duty. c) Obtaining duty paid inputs, availing the input tax credit thereon and exporting finished goods after payment of duty (after utilizing such input tax credit) and thereafter claiming the rebate of the duty paid on exported goods. ii) It was noted that in the proposed GST regime, exports are proposed to be Zero rated which means that the export goods wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provision of rebate and the legality of the same will be examined at the time of vetting of the GST law by the Law Ministry. v) Since the process for payment of refund of GST paid on inputs (including input services) or payment of rebate of GST paid on finished goods is similar to a large extent, the same is being discussed here together. The following process is proposed for making this system as simple as possible: a) The IEC details of taxpayer will be captured at the time of issuance of GSTIN and the same can be verified online with DGFT for verifying the correctness of the exporter s particulars. b) The refund of ITC / rebate of GST paid on exported goods may be granted on submission of application to this effect by the taxpay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of export, the exporter would be required to upload the scanned copies of the same with online refund application. As regards the BRC, it was noted that as per the RBI guidelines, the exporter has a time period of one year from the date of export, within which the export proceeds are required to be remitted into India. Thus BRC will not be available till the time export proceeds are realized. Therefore it is recommended that submission of BRC may not be insisted upon at the time of filing of refund application and post facto verification can be carried out by the tax authorities. The refund in such cases should be subject to submission of BRC details within a period of maximum one year or such period as extended by RBI from the date of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submission of these documents. Once the GST paid character of exported goods is established, refund can be sanctioned. k) In respect of refund claimed for GST paid on inputs (including input services) used for exported goods, once the export is established, verification of the GST paid on the inputs (including input services) as well as their utilization for the exports is required to be carried out. For this normally copy of invoices evidencing GST payment are sought from the exporter and the same are verified manually by the jurisdictional authority. Besides a declaration is filed by the applicant with the proper officer declaring inter alia input-output ratio for inputs on which refund is sought. In the proposed GST regime, the GST pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whichever is later. This will take care of the situation if the payment has already been received in advance. It is also recommended that e-BRC module may be integrated in the refund process under GST. iii) It is suggested that since exports of services cannot be verified online through ICEGATE, there should be a separate application for refund of service exported. DEEMED EXPORT OF GOODS OR SERVICES: i) It was noted that there is a concept of deemed export for situations listed in Chapter 8 of the Foreign Trade Policy. Supplier of domestically produced duty paid goods when supplied to EOUs / SEZs / Projects under International Competitive Bidding (ICB) / Mega Power Plants/World Bank Funded Projects can seek refund of terminal ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore they would have to submit copies of all the invoices, etc. in case claim of refund is filed by them. iii) It is also recommended that this recommendation may be specifically brought to the notice of EC as this is deviation from the present practice being followed by the States. GENERAL: i) It was suggested that as a thumb rule, up to 90% of the refund claimed by the taxpayer may be sanctioned automatically by the system. The balance amount of refund may be granted after completion of verification of documents / accounts to be done at the end of the financial year and to be completed within a period of three months. The issue was discussed and it is recommended that partial refund may not be allowed and entire refund cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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