Tax saving under GST for Exporters


The GST Council has decided to extend the tax exemptions that are available for the imported goods for the next 6months after 31st March 2018. Hence, the exporters who are currently utilizing the various promoting schemes related to exports can continue to claim the exemptions on their imports till 1st October 2018. The GST Council also announced the e-wallet scheme on 10th March 2018, this was done to ensure that the exporters enjoy all the tax exemptions.

Tax saving under GST for Exporters

Earlier, the exporters were facing certain liquidity issues, since GST came into being and there was constant delay in the refunds that the exports were supposed to pay at the time of shipping. GST council believes that the tax exemptions for taxpayers will make the competitive and tax efficient in the International Market. However, this exemption is not available to the who has been prosecuted for any offence under GST, the tax evasion for it is Rs. 2.5 Cr.

The solution

The temporary solution is to re-introduce pre-GST Exemptions on imports, where the taxpayer is not required to pay taxes at the time of imports, this came into being after the 22nd Council meeting that was held on 1st October 2017. The council noticed that exporters were suffering because of the blockage of cash, as they had to pay GST and IGST on raw materials, inputs, imported finished goods etc. Moreover, the exporters who hold AA, EPCG and EOUs, will not pay any kind of IGST or Cess on the imports. Adding to this, there was a new scheme that was introduced for the merchant exporters, wherein they will just have pay 0.1% as GST for their Procured Goods. Also, domestic procurements those which were formed under AA or Advance Authorization, EPCG, EOU schemes were considered as deemed exports with the flexibility allowed either to the suppliers or exporters under which they can claim the refund of IGST or GST Payment. All the above-mentioned benefits were available to the exporters till 31st March 2018.replied klokker
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Tax saving under GST for Exporters

Moreover, some Financial Institutions and banks are given the relief to import Gold without paying IGST, which was supposed to be supplied to the exporters as per Advance Authentication Scheme.


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