Sunday, August 06, 2017

GST Tweets Part II: GST Reated FAQ on Refund, Cess, Composition Scheme, Customs and Exports

The tweets received by askGST_GoI handle were scrutinized and developed into a short FAQ of 100 tweets. It should be noted that the tweets received or the replies quoted are only for educational and guidance purposes and do not hold any legal validity.

S.No.
Qestions/Tweets Received
Replies
Refund
28.
I have a pending export refund in Service Tax. What will happen?
Refunds under earlier laws will be given under the respective laws only.
29.
As an exporter, how do I ensure that my working capital is not blocked as refunds?
Appropriate provisions have been made in the law by providing for grant of 90% refund on provisional basis within 7 days from filing of registration.



Cess
30.
What will be the impact of GST on coal? Will the clean energy Cess on coal go or will it stay?
Clean Environmental Cess on coal will be replaced by GST Compensation Cess.
Composition Scheme
31.
Suppose I am in composition scheme in GST. If I purchase goods from unregistered person, then GST will be paid to Government by me or not?
Yes, you will be liable to pay tax on reverse charge basis for supplies from unregistered person.
Customs
32.
What duties will be levied on import of goods?
Customs duty and cess as applicable + IGST+ GST compensation cess. IGST and GST compensation cess shall be paid after adding all customs duty and customs cess to the value of imports.
Exports
33.
Present Procedures have Service Tax on Nepal, But no Goods Tax on Nepal. But, With GST, what tax will apply?
The export procedure for Nepal would be same as that to other Countries.
34.
Are there exemptions for SEZ? How will a SEZ transaction happen in GST regime?
Supplies to SEZs are zero-rated supplies as defined in Section 16 of IGST Act.
35.
How would the sale and purchase of goods to and from SEZ will be treated? Will it be export / input?
Supply to SEZs is zero rated supplies and supplies by SEZs are treated as imports.
36.
Please clarify status of international export freight under GST as the same was exempt under POPS rules. It is zero rated in most countries.
POS for transport of goods determinable in terms of sec 12(8) or sect 13(8) of IGST Act, 2017, depending upon location of service provider/service receiver. Exports are treated as zero rated supplies.
37.
When goods are being imported from SEZ who will pay IGST?
Such supply is treated as import and present procedure of payment of duty continues with the variation that IGST is levied in place of CVD.
38.
Who will pay IGST when goods are procured from SEZ? Today importer is paying both BCD and CVD.
Such supply is treated as import and present procedure of payment continues with the variation that IGST is levied in place of CVD.

IREPS: Indian Railways e-Procurement System

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