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some specific guidelines could be issued for small who gets to decide whether the small exporters’
exporters to sort out their problem,” the official track record is good or not, there is a lot of
said. discretion involved.
According to the Central Goods and Services Tax “There are excellent officials who are taking
Rules, 2017, exporters of goods without payment a broad view and asking for only bonds. But
of integrated tax are required to furnish only an there are others who insist on bank guarantees
LUT instead of a bank guarantee if they are status- as well, causing distress to exporters,” Sahai
holders as specified in the Foreign Trade Policy or said. Furnishing of bonds supported by a bank
have sizeable inward remittances. guarantee blocks the working capital of exporters
as they have to make a margin money deposit
The instruction adds that smaller exporters with against the guarantee.
a good track record will have to furnish a bond
on a non-judicial stamp paper while those whose (Source:- http://www.thehindubusinessline.com/economy/
export record is not good will have to furnish a policy/igst-exemption-small-exporters-face-uncertainty/
bank guarantee. Since it is the GST commissioner article9809459.ece dated 9th August-2017)
8. 'IGST ON HIGH-SEAS SALE OF IMPORTS IS LEVIED ONLY DURING
CUSTOMS CLEARANCE'
Q. On high-seas sales, will IGST be levied twice No. In the notification no. 131/2016-Cus dated
— first on high-seas sales and then on custom October 31, 2016, as amended, there is no
clearance? condition denying drawback on the grounds
that the goods have been exported under
The CBEC Circular no 33/2017-Cus dated bond or letter of undertaking.
August 1, 2017 clarifies that IGST on high-
seas sale transactions of imported goods, Q. We are engaged in providing commission
whether one or multiple, will be levied and agent services to principals based outside
collected only at the time of importation — i.e. India. Supplies are made by our principals
when import declarations are filed before the outside India to customers in India.
Customs authorities for customs clearance Commission receivable by us is in foreign
purposes for the first time. Further, value currency. We understand that GST is payable
addition accruing in each such high-seas sale by us for our “intermediary services” at 18
will form part of the value on which IGST is per cent. Can we take input tax credit of the
collected at the time of clearance.The importer same?
(last buyer in the chain) would be required to
furnish the entire chain of documents, such No, because it is your outward supply and not
as original invoice, high-seas-sales contract, an inward supply for you.
details of service charges/ commission paid
etc., to establish a link between the first Q. We are a sole proprietorship firm offering BPO
contracted price of the goods and the last services to our clients located abroad. All our
transaction. revenue is from outside India. Being so, sales
tax was not applicable to us. We hope even
Q. We are merchant exporters, exporting our GST is not applicable to us. Please advise.
goods without payment of IGST, under letter
of undertaking. Will this come in the way of Your activity falls within the definition of
our getting duty drawback? services given in Section 2(6) of the IGST Act,
2017, as you meet all the stipulated conditions
29 August-September-2017
