From this week, exporters who paid Goods and Services Tax (GST) can claim for refunds for the month of August and September. As per Chief Executive, GST Network (GSTN) will launch separate online application this week for claiming Integrated GST (IGST) would be made available from this week.
This app is developed wherein exporters can save and upload their sales data which are part of GSTR-1 after filling up export details in Table 6A.
Once the table is extorted separately and after exporters digitally sign it, it would automatically be submitted to the customs department.
After submission, the customs department will rubber-stamp the information provided with shipping bill data and taxes paid in GSTR-3B. The amount to be refunded will be either credited to exporter’s bank account through ECS or a cheque would be issued.
As per the month of July-August, about Rs 67, 000 crores was acquired as IGST of which Rs 5,000-10,000 crore will be due as refunds to exporters.
GST which is considered as the mixture of indirect tax doesn’t provide any exemptions, so the exporters must pay IGST first and then claim for refunds after exporting.
To provide a helping hand to the exporters, the GST Council earlier this month decided a package that includes extending the Advance Authorisation / Export Promotion Capital Goods (EPCG) / 100% EOU (Export Oriented Unit) schemes to sourcing inputs from abroad as well as domestic suppliers until March 31, wherein there is no requirement to pay IGST.
For now, the government is aiming to clear pending GST refunds of exporters by November-end.
Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws