Import and Export with GST (Goods and Services tax)

Import and Export with GST (Goods and Services tax)

Import and Export with GST:

When goods and services obtained from an external source across the national border is termed as Import. and when goods and services provided by us to an external source is called as Export. In the current scenario there are different terms and conditions with the tax structure for Import and Export of goods and services. when we do a trade outside India we get to bound ourselves with different tax regimes and structures that are sometimes not easily understood by a normal public of India. Thus as the affects of GST rolling out in India there are different implications for Import and Export of goods and services.

Import of Goods and services: In the current scenario if a person imports goods from an external source there are Customs duty, Countervailing duty and special additional duty imposed upon. CVD is equivalent to the excise duty on goods that are manufactured in India. SAD is equivalent to Vat on goods in India. Also the refund of CVD and SAD is based on conditions. These are imposed on the imported goods to bring the price of goods to the market Price. Where as on the import of service, service tax is being implemented on. But after GST making influence in this there will be changes on the Imports and those are:

  • On the Import of goods instead of CVD and SAD only Customs Duty and IGST will be imposed. Also a person can claim full tax credit that is paid on import of goods. However Customs doesn’t have a refund.
  • Where in when its coming to Import of Services, there are few conditions and those are: Supplier should be outside India, Receiver should be from India and also the place of supply should be in India.

Export of Goods and services: When talking about export the current tax structure has zero rated for exports. but a person can claim refund of tax paid for manufacturing, purchase, provide of goods. Even with the GST application:

  • export will be Zero rated and also a person can claim tax credit.
  • But there are conditions when coming to export of services, Supplier should be from India, Receiver should be outside India, Place has to be outside India, Payment received should be convertible foreign exchange and supplier and receiver should not be the establishments of the same person.

Thus making Import and Export of goods so easy for public with so many advantages too.

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