Exports and Imports plays a vital role in the growth of the economy by pooling in foreign exchange through international borders. Under GST act export means to supply goods outside the border of India whereas import means the supply of goods inside India through international borders.
Moreover, IGST will be applicable to the goods which are imported to India according to the IGST Act. Furthermore, if the goods are exported from India then that supply will be deemed as zero-rated. Hence no tax rate shall be applied on it. In this article we'll discuss Import and Export under GST, the concept of import and export under GST, GST on exports and imports and much more.
As per section 7(2) of IGST Act, the goods that are imported in India, till they pass the customs borders of India shall be treated as inter-state supply. Hence, e-way bill provisions will be applicable to the imports as well. Let us see the applicability of it and when shall the taxpayer generate the e-way bill under imports.
There is a typical procedure that is involved in the imports. These procedures include different stages.
Stage 1: When the goods have arrived at port or airport then the goods are said to be imported.
Stage 2: After the arrival of goods at the port, they remain under the customs custody.
Stage 3: From the customs custody, the goods are further transferred for clearance to either CFS (Container Freight Station) or ICD (Inland Courier Depot). Under rule 138, these kinds of transactions are exempted that means they do not have to generate an e-way bill for this transaction.
Stage 4: Then these goods are further transacted from CFS or ICD, either to
In the first case, if there is a transaction between the ICD or CFS to bonded warehouses, that transaction will be exempted from the provisions of generating the e-way bill. Once the goods are out from the warehouse for the supply the recipient of the good has to generate an e-way bill.
In the second case, when the goods are transported to the factories or business for consumption then it is mandatory for the recipient factory or business generate an e-way bill.
There are two stages that are involved in the export procedure. Let us see what are they
Stage 1: In this stage the goods are transported from the exporter's warehouses or the location of business to the CFS or ICD. For the transportation purpose, the exporter has to generate an e-way bill
Stage 2: The goods so transported from the exporter to CFS or ICD is transferred to the port or airport. This transfer of good is exempted from the provision of generation of an e-way bill.
Moreover, there are some goods that are exempted from carrying an e-way bill even for export and import under GST. Some of them are
• Diesel, petrol, kerosene, lubricant oil for any Indian aircraft etc.
• Paper money.
• Wool, woollen cloth received as a gift from the red cross society.
• Goods imported by the diplomats or their families for consumption.
• Goods imported in India for fair or exhibition that shall be re-exported within six months from the date of receiving that good.
• Goods transported to or from Nepal or Bhutan.
The list includes more items.
In the export of imported goods under GST, the portal and procedure remain similar for the generation of an e-way bill.
But there are some points that shall be kept in mind while furnishing the details in an e-way bill in case of GST on imports and exports.
|Particulars in the e-way bill||In case of Import||In case of Export|
|Sub-types of transaction||The taxpayer shall enter Import.||The taxpayer shall enter Export.|
|Type of document||Bill of entry shall be used to furnish this detail.||Invoice of tax generated for export of goods shall be used to furnish the details.|
|Bill From||If the bill is from the unregistered Person.||Exporter’s details including the name, GSTIN|
|Dispatch From||In state line ‘other countries’ shall be selected and Pin code 999999 shall be entered.||Exporter’s location of business or warehouse address as the case may be.|
|Bill to||Importer's details including the name, GSTIN and other details.||If a person outside India is unregistered.|
|Ship to||Importer’s location of business or warehouse address as the case may be.||In state line ‘other countries’ to shall be selected and Pin code 999999 shall be entered.|
|Details of Transportation||Details of transporter which includes vehicle details and transporter's details.||Details of transporter which includes vehicle details and transporter's details.|
The main area of concentration while generating an e-way in the case of imports and exports is to validate the distance so as to avoid the consequences that can be imposed on the concerned parties.
Import: The distance and validity of an e-way bill shall be calculated when the goods are transported to the location of business or factory from either CFS/ICD or warehouses.
Export: The distance and validity of an e-way bill shall be calculated before the transportation of the goods from the location of business to ICD/CFS or warehouses as the case may be.