Exports and imports and SEZ supplies :
♦ In relation to GST, following are the concessions/incentives for exports : (1) Exemption from GST on final products or (2) Refund of GST paid on inputs.
♦ Export of goods or services or both and supplies of goods or services or both to SEZ unit or SEZ developer will be zero rated supply – section 16(1) of IGST Act.
♦ Credit of input tax may be availed for making zero-rated supplies, even if such supply is exempted supply – section 16(2) of IGST Act.
♦ Refund of unutilized input tax credit shall not be allowed in cases where the goods exported out of India are subjected to export duty.
♦ Refund of input tax credit shall not be allowed if the supplier of goods or services avails duty drawback of CGST/SGST/UTGST or claims refund of IGST paid on such supplies [Thus, duty drawback of customs portion can be availed].
♦ Benefits will be available to ‘deemed exports’ also. Mostly, the benefit will be through refund route and not direct exemption.
♦ If goods are imported, IGST and GST Compensation Cess will be payable.
♦ If goods are taken to warehouse and then cleared from warehouse, IGST and GST Compensation Cess will be payable at the time of removal from warehouse.
♦ IGST Act or CGST Act make no provision in respect of high seas sale i.e. sale in course of imports. In absence of such specific provision, it seems IGST will be payable if sale takes place within Exclusive Economic Zone i.e. within 200 nautical miles inside sea [Let us hope some solution will be given by Government].