Introduction of One Tax for One Nation did serve to be an equivocation to the exporters. Export is the most important business activity of any country. Now whether the GST system ease out the process of export or further complicates it, is the matter of concern.
“Export “means when goods or services are sent from our country to another country against monetary consideration and realisation of foreign exchange earnings. As per section 2 (18) of Customs Act, 1962. “Export “means taking goods out of India to a place outside India. Increase in exports results in higher economy growth as it induces the purchasing power of the nation in the global market.
A good is a tangible product which is visible and can be held
The export of goods has been defined under sub-section (5) of Section 2 of IGST Act, 2017 as “Export of goods” means taking goods out of India to a place outside India.
Example: If I produce 100 tea cups and sell it to a company in Budapest, then I am exporting these 100 cups.
A service is an intangible element which is not visible and cannot be held but only experienced.
The export of services has been defined under sub-section (6) of Section 2 of IGST Act, 2017 as “Export of services “mean the supply of any service when
In case of the supply of goods that are prescribed under bond or Letter of Undertaking for the safeguard of the payment of integrated tax, refund of unutilized input tax credit will be made. In this case, the exporter can file a refund application on the GST portal.
If the exports have been made without furnishing of Bond / Letter of Undertaking (i.e. with the payment of tax), the exporter can claim the refund of taxes paid on export as well as the accumulated unutilized ITC relating to such exports
If the exporter is an agency of the United Nations or any embassy as specified in section 55 safeguards of GST may be prescribed. In that case, a refund can be claimed as specified under section 54 of the CGST Act. In this case, the shipping bill needs to be provided to claim the refund of the IGST
The blocked working capital under GST affecting the cash liquidity of small businesses, the Council disbursed their refunds through cheques for July and August from October 10 and October 18 onwards respectively.
The implementation of GST has been proved to be a blessing in disguise for the exporters due to the refund and input tax credit facility. But somehow they have not been able to receive the refund at the appropriate time. If these small hiccups are treated over time, it is going to be creating an upward graph of the Indian economy.