TMI BlogExports and ImportsX X X X Extracts X X X X X X X X Extracts X X X X ..... d; c) Wherever the supplies are exempted, or the supplies are made without payment of tax, the taxes paid on the inputs or input services i.e. the unutilised input tax credit is refunded. Q 3. How is zero rated supply different from exempted supply? Ans. The difference between zero rated supplies and exempted supplies is tabulated as below: Exempted Supplies Zero rated Supplies exempt supply means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11 of CGST Act, 2017 or under section 6 of the IGST Act, 2017 and includes non-taxable supply zero-rated supply means export of goods or services or both or supply of goods or services or both to a SEZ developer or a SEZ unit as per section 16 of IGST Act, 2017 No tax on the outward exempted supplies, however, the input supplies used for making exempt supplies to be taxed No tax on the outward supplies; Input supplies also to be tax free Credit of input tax needs to be reversed, if taken; No ITC on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e para 2.07(b) and has allotted revised permanent IEC number for such category of importers vide DGFT Public Notice No. 09/2015-20 dated 29th June, 2017 . The same can be used for import /export by the categories of importers/exporters mentioned therein. For instance, persons /Institutions /Hospitals importing or exporting goods for personal use, not connected with trade or manufacture or agriculture, earlier using IEC no. 0100000053 now have to use IIHIE0153E as IEC. Q 7. What is export of goods? Ans. The definition of export of goods in section 2(5) of IGST Act has been straight taken from section 2(18) of the Customs Act, 1962 and means taking goods out of India to a place outside India . Q 8. What is India in the context of GST? Ans. The term India as per section 2(56) of CGST Act, 2017 means- the territory of India as referred to in article 1 of the Constitution , its territorial waters, seabed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976, and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ... vs State of Karnataka and Ors. on 23 January, 2004 = 2004 (1) TMI 649 - KARNATAKA HIGH COURT before Karnataka High Court, the Court held that State of Karnataka had taxation powers over territorial waters. The matter was appealed against before the Supreme Court and the Supreme Court in Civil Appeal No. 3383/2004 has stayed the order of the High Court. The Hon ble Supreme Court on 13.1.2016 = 2016 (1) TMI 1395 - SUPREME COURT OF INDIA while hearing this case had observed as follows: any pronouncement of the court would have far reaching implications not only for central state relationship but the federal character and separation of legislative powers of the union and the States . The GST Council in its ninth meeting held on 16th January, 2017 took the decision that the territorial water within the twelve nautical miles shall be treated as the territory of the Union of India unless the Hon'ble Supreme Court decides otherwise in the on-going litigation on the issue but the power to collect the State tax in the territorial waters shall be delegated by the Central Government to the States. Accordingly, for supplies in territorial waters, section 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate and a copy of the same shall also be provided to the jurisdictional tax officer of the registered supplier. the registered recipient shall move the said goods from place of registered supplier (a) directly to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be exported; or (b) directly to a registered warehouse from where the said goods shall be moved to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be exported; if the registered recipient intends to aggregate supplies from multiple registered suppliers and then export, the goods from each registered supplier shall move to a registered warehouse and after aggregation, the registered recipient shall move goods to the Port, Inland Container Deport, Airport or Land Customs Station from where they shall be exported; in case of situation referred to in above condition, the registered recipient shall endorse receipt of goods on the tax invoice and also obtain acknowledgement of receipt of goods in the registered warehouse from the warehouse operator and the endorsed tax invoice and the acknowledgment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government may, on the recommendations of the Council, notify certain supplies of goods manufactured in India as deemed exports, where goods supplied do not leave India, and payment for such supplies is received either in Indian rupees or in convertible foreign exchange. Notification No. 48/2017-Central tax dated 18th October, 2017 has been issued notifying the following supplies of goods as deemed exports. (i) Supply of goods by a registered person against Advance Authorisation (ii) Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation (iii) Supply of goods by a registered person to Export Oriented Unit (iv) Supply of gold by a bank or Public Sector Undertaking specified in the notification No. 50/2017-Customs, dated the 30th June, 2017 (as amended) against Advance Authorisation. Q 16. What are the documents to be submitted as evidence of supplies as deemed export supplies? Ans. A supplier of deemed export supplies has to submit following documents for claiming refund: (i) Acknowledgment by the jurisdictional Tax officer of the Advance Authorisation holder or Export Promotion Capital Goods Authorisa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liability at the time of export. Q 19. Can we export under normal procedure without availing the benefit of 0.1 per cent while procuring goods for exports? Ans. Yes, the facility of procuring goods at 0.1 per cent is an optional facility which is available subject to adhering to the conditions mentioned in Notification no. 41/2017-Integrated Tax (Rate) dated 23rd October, 2017 . In case, an exporter wants to procure the goods for exports on payment of applicable GST and subsequent exports either on LUT or on payment of IGST, the exporter can do it and claim back ITC or IGST, as the case may be. Q 20. Can duty credit scrips received as incentive by exporters such as MEIS, SEIS etc be utilised for payment of all duties at the time of import? Ans. No, these scrips can be utilised only for payment of Basic Customs duty and Safeguard Duty, Transitional Product Specific Safeguard Duty, and Anti-dumping Duty. In case of non-GST supplies like petroleum products etc, the scrips can also be used for payment of duties like central excise, CVD/ SAD. The scrips cannot be used for payment of any type of GST- IGST/CGST/SGST/UTGST or compensation cess. Q 21. How can a manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Q 26. Whether commission received by a buying agent for helping procuring goods from an exporter is exempted from GST? Ans . Situation I- Buying agent is located in India: The buying commission received by buying agent in India from the importer overseas in foreign exchange will be taxable as the agent is covered in definition of intermediary and therefore place of supply is in India. Situation II- Buying agent is located outside India: The buying commission received will not be taxable as place of supply will be outside India. Q 27. Does GST be payable on goods not intended to be sold, taken out for participation in overseas exhibitions and trade fairs and brought back into India after exhibition? Ans. GST is not payable in such cases. Exporters will need exhibition participation letter and no foreign exchange involved letter from the concerned bank for the purpose of exchange control requirements. At the time of re-import of the subject goods, identity of goods with respect to the export documents needs to be established to seek exemption from import duty in accordance with Customs provisions. Q 28. What is e-wallet scheme? Ans. Concept of e-Walle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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