Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *   CBIC issues draft rules for Customs valuation *  Top Headlines: Threshold for Benami deals, green bond investors, and more *  Govt aims 1-hour clearance for goods at all ports *  Exporters Allowed To Use RoDTEP, RoSCTL Scrips To Pay Customs Duty, Transfer Them; Rules Amended *  Millions of labourers to be affected by brick producers’ strike over hike in GST, coal rates *  Inauguration of ‘kendriya GST parisar’ *  Transporter can seek Release of Conveyance alone, not Goods under GST Act: Madras HC *  GST: Quoting of DIN Mandatory for Responding to Notice, Govt Modifies Portal *  Firms can soon file claims for GST credits of ?400 cr *  CBIC issues modalities for filing transitional credit under GST. *  Mumbai: Man creates 36 fake GST firms, arrested for input tax credit fraud of Rs 23 cr *  Report to restructure Commerce Ministry under study; idea is to set up trade promotion body: Goyal *  Firms can soon file claims for GST credits of ?400 cr *  Gambling Alert! Govt May Levy Up To 28% GST; UP, Bengal Back Move *  EPFO backs raising retirement age to ease pressure on pension funds *  India Moving Up Power Scale, Set to Become Third Largest Economy By 2030 *  Airfares Get Expensive: What Changes for Flyers From Today? *  IRCTC Latest News: Passengers to Pay More For Cancelling Confirmed Rail Tickets Soon. *  IBC prevails over Customs Act, says Supreme Court. *  As GST enters sixth year, a time for evaluation and reassessment *  There’s GST on daily essentials as Centre needs money to buy MLAs: Arvind Kejriwal *  Now, GST on cancellation of confirmed train tickets, hotel bookings *  GST kitty for top States could rise 20% in FY23, says Crisil *  French customs officials seize another cargo vessel over Russia sanctions *  TradeLens builds on Asia momentum with Pakistan Customs deal *  Hike tax on tobacco, reduce affordability & increase revenue: Civil society organizations to GST council *  Bihar: ?10 crore tax evasion on tobacco products detected in raids *  Centre failed on GST, COVID; would it be anti-national? Rajan on Infosys row *  Service Tax not Chargeable on Income Tax TDS portion paid by recipient: CESTAT grants relief to TVS *  Foreign portfolio investors make net investment of Rs 7575cr in Sep so far
Subject News *  Run-up to Budget: Monetary threshold for GST offences may rise to Rs 25 cr *   GST (Tax) E-invoice Must For Businesses With Over Rs 5 Crore Annual Turnover *   Both Central GST and excise duty can be imposed on tobacco, rules Karnataka high court *   CBIC Issues Clarification On Extended Timelines For GST Compliance *   CBIC Issues Clarification On Extended Timelines For GST Compliance *  Budget 2023- 9.6 crore gas connections *  GST: Tamil Nadu Issues Instructions for Assessment and Adjudication Proceedings *  GST: CBIC Extends Last Date for filing of ITC *  GST collection in September surpasses Rs 1.4 lakh crore for straight seventh time *  Dollar smuggling case: Customs chargesheet names M Sivasankar as key conspirator. *  Hike in GST rates fuels inflation *  Assam: CBI arrests GST commissioner in Guwahati *  GST fraud worth ?824cr by 15 insurance Cos detected *  India proposes 15% customs duties on 22 items imported from UK *  Decriminalising certain offences under GST on cards *  Surge in GST collections more due to higher inflation: India Ratings *  MNRE Notifies BCD and Hike in GST Rates as ‘Change in Law’ Events But With a Condition | Mercom India *   Solar projects awarded before customs duty change allowed cost pass-through *  Rajasthan High Court Dismisses Writ Petitions Challenging Levy Of GST On Royalty *   GST revenue in September likely at Rs 1.45 lakh crore *  Govt working on decriminalising certain offences under GST, lower compounding charge *  Building an institution like GST Council takes time, trashing is easy: Sitharaman *  GST collections in Sept may touch ?1.5 lakh crore *  KTR asks Centre to withdraw GST on handlooms *  After Gameskraft, More Online Gaming Startups To Receive GST Tax Claims *  Madras HC: AAR Application Filed Under VAT Does Not Survive After GST Enactment *  Threshold for criminal offences under GST law may be raised *  Bengaluru: Gaming company faces biggest GST notice of Rs 21,000 crore *  CBIC clarifies Classification of Cranes for GST, Customs Duty *  Customs seize gold hidden in bicycle in Kerala airport  

Comments

Print   |    |  Comment

GST UPDATE ON AVAILMENT OF ITC BY EXPORTERS AVAILING HIGHER RATE OF DRAWBACK

GST UPDATE ON AVAILMENT OF ITC BY EXPORTERS AVAILING HIGHER RATE OF DRAWBACK

GST UPDATE ON AVAILMENT OF ITC BY EXPORTERS AVAILING HIGHER RATE OF DRAWBACK

At present, two rates of drawback are prescribed - “Drawback when CENVAT facility has not been availed” and “Drawback when CENVAT facility has been availed”. Wherever the wordings, “Drawback when CENVAT facility has not been availed” have been used, it means that the exporter is eligible to claim the components of Customs, Excise and Service tax. This rate is on higher side and cenvat facility is not available with this rate. Further, wherever the wordings, “Drawback when CENVAT facility has been availed” are used, it means that the exporter is eligible only for the Customs portion of duty drawback. This rate is on lower side and exporters claiming this rate are allowed to avail the facility of cenvat credit.

Government has notified new Customs and Central Excise Duties Drawback Rules, 2017 vide notification no. 88/2017-Customs (N.T.) dated 21.9.2017. Circular no. 38/2017-Customs dated 21/09/2017 has been issued to clarify the provisions related to the new rules. Further, the new all industry rates of duty drawback have also been notified which are effective from 1st October, 2017.

In case where the higher rate of drawback is claimed, only the credit of SGST is allowable. Now there can be two type of invoices. First type of invoice where inter-state supply takes place and only IGST is charged. The complete credit will not be allowed in that case and no need to accept the invoice. Alternatively, we can accept the invoice and reverse the entire credit of IGST as mentioned in the invoice accepted by us. But intra-state supply takes place in second type of invoice and both CGST and SGST are charged. In such a situation, the credit of SGST is allowed but CGST is not allowed. However, the supplier will upload the entire invoice details which will auto-populate in the GSTR-2 of exporter. However, a part of invoice cannot be accepted, thus, the entire invoice shall have to be accepted by the exporter.
Hence, no option is left with exporter except to accept the complete invoice. But the credit of CGST is not allowed. Then there is practical solution to this practical problem. After accepting the invoice, the exporter can reverse the CGST portion in GSTR-2 return itself. In GSTR-3B, this amount is being shown at reversal column (others). Similarly, exporter shall have to accept the entire invoice in GSTR-2 also. Thereafter, in the column of reversal, the non-admissible portion of credit will have to be shown in the residual column "others". The ultimate effect of this exercise will be that only SGST credit shall stand availed.

You can visit us at www.capradeepjain.com , our facebook page at https://www.facebook.com/GSTTODAYBYPRADEEPJAIN/…

Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com