Export of Goods or Services or Both

Deemed Exports

The supply of goods or services to the following would be treated as exports under GST:

• Supply of goods by a registered person against Advance Authorisation.
• Supply made to an Export oriented undertaking (EOU) or Hardware Technology Park unit, Software Technology Park unit, Biotechnology Park unit.
• Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation.
• Supply of gold by a bank or Public Sector Undertaking against Advance Authorisation as per Customs law.
• Inter-State supply and covered under the IGST Act.
• ‘Zero rated supply’ i.e. the goods or services exported shall be relieved of GST levied upon them either at the input stage or at the final product stage.

The salient features of the scheme of export under GST regime are as follows:

• The goods and services can be exported either on payment of IGST which can be claimed as refund after the goods have been exported, or under bond or Letter of Undertaking (LUT) without payment of IGST.
• In case of goods and services exported under bond or LUT, the exporter can claim refund of accumulated ITC on account of export.
• In case of goods the shipping bill is the only document required to be filed with the Customs for making exports. Requirement of filing the ARE 1/ARE 2 has been done away with.
• The supplies made for export are to be made under self-sealing and self-certification without any intervention of the departmental officer.
• The shipping bill filed with the Customs is treated as an application for refund of IGST and shall be deemed to have been filed after submission of export general manifest and furnishing of a valid return in Form GSTR3 by the applicant.

Refund of Tax

(a) In case of refund of tax on inputs used in exports:

• Refund of 90% will be granted provisionally within seven days of acknowledgement of refund application.
• Remaining 10% will be paid within a maximum period of 60 days from the date of receipt of application complete in all respects.
• Interest @ 6% is payable if full refund is not granted within 60 days.

(b) In the case of refund of IGST paid on exports:

Upon receipt of information regarding furnishing of valid return in Form GSTR-3 by the exporter from the common portal, the Customs shall process the claim for refund and an amount equal to the IGST paid in respect of each shipping bill shall be credited to the bank account of the exporter.

Section 13(2) IGST determines the place of supply of any type of service except the services specified in sub-sections (3) to (13) IGST shall be the location of the recipient of services.

Place of Supply Relating to Goods (Section 13(3)(a) IGST):

According to this section location of the place of supply shall be the location where the goods are available for service.

Place of Supply Relating to Individual (Section 13(3)(b) IGST):

According to this section location of the place of supply shall be the location where the services are provided to the individual, represented either as the recipient of services or a person acting on behalf of the recipient.

Place of Supply Relating to Immovable Property (Section 13(4) IGST):

According to this section location of the place of supply shall be the location where the immovable property is located or intended to be located.

Section 13(5) IGST:

The place of supply of services supplied by way of admission to, or organisation of a cultural, artistic, sporting, scientific, educational or entertainment event, or a celebration, conference, fair, exhibition or similar events, and of services ancillary to such admission or organisation, shall be the place where the event is actually held.

Section 13(8) IGST Act Relating to Three Services Whose Place of Supply Shall be location of The Supplier of Services.

(a) Services supplied by a banking company, or a financial institution, or a non-banking financial company, to account holders.

(b) Intermediary services.

(c) Services consisting of hiring of means of transport, including yachts but excluding aircrafts and vessels, up to a period of one month.

Intermediary Services defined in section 2(13) of the IGST Act i.e.

“intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account;

“INTERMEDIARY SERVICES” are exempted from GST Tax

Section 13(12) IGST Act Relating to Online Services

The place of supply of online information and database access or retrieval services shall be the location of the recipient of services.

(a) The location of address presented by the recipient of services through internet is in the taxable territory.

(b) The credit card or debit card or store value card or charge card or smart card or any other card by which the recipient of services settles payment has been issued in the taxable territory.

(c) The billing address of the recipient of services is in the taxable territory.

(d) The internet protocol address of the device used by the recipient of services is in the taxable territory.

(e) The bank of the recipient of services in which the account used for payment is maintained is in the taxable territory.

(f) The country code of the subscriber identity module card used by the recipient of services is of taxable territory.

(g) The location of the fixed land line through which the service is received by the recipient is in the taxable territory.