We are a unit in a special economic zone (SEZ). We have an order for export from a merchant exporter in domestic tariff area (DTA). Do we need to charge Integrated Goods and Services Tax (IGST) to the merchant or dispatch the goods according to Rule 46 (10) and 46 (11) of the SEZ Rules, 2006 for subsequent export by him? Will the provisions of Section 51 of the SEZ Act, 2005, that give over-riding effect to SEZ laws, apply in this case?
The SEZ laws will not make the GST laws
inapplicable in this case because there is no conflict or inconsistency of any provision of SEZ laws with any provision of GST laws.
Each law will play out in full. So, the exports from SEZ must be made in accordance with the Rules that you have mentioned and also in accordance with the GST laws.
So, you must charge IGST
to the merchant exporter
who can make zero-rated supplies and export the goods under GST laws.
As mentioned in the said Rules, the goods should move from SEZ unit to the port of export directly. The merchant exporter
should file free shipping bill naming you as the manufacturer. You can count the exports for your net foreign exchange earnings calculations on the basis of price charged to merchant exporter.
The government had fixed August 20 as the last date for filing GSTR-3B summary returns of outward and inward supplies made in July and also fixed that as the last date for payment of tax. There was no facility to carryover our Cenvat Credit and Value Added Tax (VAT) balances through TRAN-1 returns in the GST Network. So, the government extended the last dates till August 28 for filing the returns and TRAN-1. This extension was made on August 17, by which time we had already filed our GSTR-3B returns and paid the tax, as we did not want to wait till the last day. We have filed TRAN-1 on August 22 when the GST Network started accepting the returns. Can we insist for the credit carried over through TRAN-1 for determining the tax liability of July?
Going by the present instructions of the government, I don’t think the GST Network
will give you the credit carried over through TRAN-1 by you after filing GSTR-3B
for July. For next month, that credit will be taken into consideration.
We had imported certain goods on payment of four per cent additional duty of Customs (SAD) before June 30. We had re-sold part of the goods on payment of VAT. For that, can we get refund of SAD now? If we now resell the balance goods on payment of GST can we get refund of the SAD?
Yes. The notification no. 102/2007-Cus dated June 30, 2007, has been suitably amended allowing SAD
refund in both the situations — that is, re-sale made before July 1, 2017, on payment of VAT or sales tax and re-sale made after payment of GST.
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