GST IN EXPORT AND IMPORT

GST on Export:

• Exports would be tax exempt.
• Benefits to be given to SEZ’s which will only be allowed to their processing zones.
• No benefit allowed to the sales from an SEZ to Domestic Tariff Area (DTA).

GST on Import:

• Both Central GST & State GST to be levied on import of Goods & Services.
• Full set-off is allowed on GST paid on import of Goods & Services.
• Tax revenue in State GST will accrue to the State where Goods & Services are consumed.

Integrated goods and service tax:

• Interstate transactions would be taxed as per a new and innovative model of Integrated GST.
• Integrated GST would be levied by center.
• IGST = Center GST + State GST.
• IGST will apply on all inter-state supplies of taxable goods and services.
• Person making sale would charge IGST and he can utilize input IGST, Center GST and State GST in order to discharge the output IGST.

Fiscal Health of the state:

• Dual GST will result in better revenue collection for states with higher consumption of goods and services.
• The Centre is expected to put in place a mechanism to compensate states for any revenue loss due to GST.
• Taxpayer would have to maintain separate details in books of account for utilization or refund of credit.
• Each taxpayer would be allotted a PAN-linked taxpayer identification number with a total of 13/15 digits.
• The administration of the Central GST would be with the Center and for the State GST with the States.
• Central GST and State GST are to be paid to the accounts of central and States separately.

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