Every importer/exporter is required to get registration under Goods and Services Tax law to obtain GST Registration certificate. GST Number is required to be mentioned mandatory on all import/export documents. Export of goods or services or both are considered as “zero-rated supplies”. In other words, GST will not be applicable on export of goods and services.
| Benefit in case of Export of Goods and Services | Benefit in case of Import of Goods and Services | ||
|---|---|---|---|
| Option 1 | Option 2 | Option 3 | Option 4 |
| Bond or letter of undertaking (LUT) | Refund Application | Input Tax Credit | Refund of Input tax Credit |
| In this case, registered person must file an LUT annually on the GST portal. After filing of LUT, he can export goods/ services without GST. | In this case, it is not required to charge/ collect GST from the customer. However, it is required to deposit GST to the government from own pocket. | A registered person can take ITC of goods and services purchased from outside India. | If registered person is not able to utilize/ set off ITC from output GST liability at the time of domestic sale of goods/ services as mentioned in option 1 |
| After that, it is neither required to charge/ collect GST from the customer nor required to deposit GST to the government. It is preferable and convenient mode to take GST benefit. | After that, registered person has to file refund application on the GST portal to claim back GST paid at the time of export of goods/ services. | In this case, a registered person can utilize/ setoff ITC from output GST liability at the time of domestic sale of goods/ services. | He can claim refund of ITC by filing refund application on the GST portal. |
In case an exporter/importer wants to start an EXIM business in the form of a Company/ ...
