Page 3 - Sme Chatroom

Export of sample is zero-rated in accordance with Section 16 of IGST Act

'AD Cat I banks may close BoE for import deals where write-off is for quality issues'

Legal action cannot be made illegal through a retrospective amendment

SME queries related to excise, VAT and exim policy answered

SWC not payable when basic customs duty debited to MEIS or SEIS scrip

SWC is levied as a percentage of basic customs duty (BCD). So, when BCD is debited to MEIS/SEIS scrip, it is exempted and consequently SWC is also nil. So, it need not be debited to MEIS/SEIS scrip

'Intermediate supplier can export through the ultimate exporter'

Para 4.30 (b) of HBP says that the intermediate supplier can also supply the product(s) directly to the port for export by the ultimate exporter (holder of Advance Authorisation).

'MEIS benefit available for export realisation in rupee through Vostro a/c'

Imports under EPCG scheme with or without IGST payment has no bearing on export of goods on IGST payment under refund claim

'Exempt supply' includes supplies on reverse charge basis to restrict ITC

'You may restrict input tax credit, as prescribed under Rule 42 of the CGST Rules, 2017'

Stamp duty on bills of exchange drawn on banks is not payable, says expert

In case of bills of exchange drawn on the importer, stamp duty is payable for usance period beyond 90 days

'Drawee must agree to bill of exchange by signing on face of instrument'

You can pay duty 'under protest' by giving a protest letter and taking acknowledgement

Govt grants refund of CVD, SAD paid for regularisation of defaults: Expert

Recently, however, I came across an order granting refund of the CVD and SAD paid upon regularisation of default under advance authorization

Benefit of two exemption notifications on same shipment allowed: Expert

The e-way bill can be generated using a web-based system, SMS-based facility, Android App, bulk generation facility, site-to-site integration or GST Suvidha Provider

Credit note must show tax rate and tax amount, says expert

As per Rule 53(i) of the CGST Rules, 2017, the rate of tax and the amount of tax must be shown in the credit note

Input tax credit must be reversed when finished goods are destroyed: Expert

Under the GST law, you do not need to inform or take permission from any authorities for destroying the finished goods

Supplier to merchant exporter can claim refund of unutilised credit

The notification 3/2018-Central Tax dated January 3, 2018 is available in the CBEC website

If recipient fails to pay supplier in 180 days, he loses ITC and interest

However, interest is a loss that you cannot get back

Exporters claiming higher drawback must submit self-declaration

For all exports made with effect from July 1, 2017 for which higher rate of drawback is claimed, exporters have to submit the self-declaration in the format given in CBEC Circular no.32/2017-Cus dated

For EOUs, wastage as per SION or 2%; else, norms must be fixed

For items having no SION, consumption of inputs shall be allowed subject to generation of waste, scrap and remnants up to two per cent of the input quantity

SME Chatroom: In case of inter-state supply, supplier should charge IGST

The e-way bill provisions have been deferred for now but as the law stands now, you are the recipient of goods but not the consignee

Inter-state supplies of up to Rs 20 lakh allowed without GST registration

A person can purchase the goods on payment of GST, export the goods either without payment of IGST under letter of undertaking or on payment of IGST under claim of refund

'IGST on high-seas sale of imports is levied only during customs clearance'

Value addition in each high-seas sale to form part of value on which IGST is collected at clearance

'Goods imported or locally procured by EOUs are not exempt from GST'

Presently, there is no exemption of GST on goods imported or procured from local sources by EOUs