Rules to Follow When You Export Under GST

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Rules to Follow When You Export Under GST

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• Managing invoices and following the prescribed
  rules is vital to export under GST. The
  registration process is mandatory for goods or
  services exported to places not included in the
  domestic territories. Registration allows
  exporters to leverage the schemes in terms of the
  current taxation policy.
• Generally, when you export under GST, it is
  considered as a zero-rated supply. In other
  words, GST will not be imposed on any goods or
  services you provide that are registered under
  GST.
• To claim the benefits of export goods or
  services, exporters must adhere to the
  governments options.
• Exporters can provide a Letter of Undertaking
  (LUT) without paying IGST fees. But, LUT is valid
  only for one fiscal year. Therefore, Exporters
  must apply for a new LUT each FY.
• Exporters may also include the IGST payment
  details and later entitle a refund for the same.

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Necessity seeds innovations. The COVID-19
pandemic has stirred the economic crisis
globally. It made India believe in Aathma
nirbhar. The government of India has notified
various tax relaxations to increase the export of
goods and services in India. Thus, several tax
benefit regimes are introduced to avoid the
burden of domestic taxes on exporters. Besides,
exporters are requested to follow specific rules
and procedures. Maintaining accurate
documentation can help exporters avail of the tax
benefits. Imprezz.in, the best GST billing
software in India, enables exporters to be GST
compliant concerning the GST updates. You can
file your GST annual returns under the specified
rules with zero hassles. In this article, we have
listed the rules to follow when you export under
GST.
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• Rules to Be Followed on Exports Under GST
• Rule 1
• PAN (Permanent Account Number) is legalized as
  the symbol of import and export by the DGFT
  (Directorate General of Foreign Trade). Exporters
  will have to create their quotes for the same. It
  is applicable if the exporter deals either
  with goods exempt under GST or products outside
  the GST system.
• Rule 2
• Invoicing with GSTIN on shipping bill is
  mandatory when exporting products concerning GST
  for domestic clearance.

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• Rule 3
• In case of exports carried out by special
  agencies under the United Nations Organization or
  notified Multilateral Financial Institutions,
  Embassies, and deputations, the exporter can
  quote Unique Identity Number (UNI) instead of
  GSTIN, in the Shipping Bill.
• Rule 4
• Without GSTIN/PAN/UIN, the shipping bill cannot
  be filed.
• Rule 5
• The claim for refund on IGST or Input Tax Credit
  paid, inputs consumed in exported goods cannot be
  processed without GSTIN and GST Invoice details
  in the Shipping Bill.

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• Rule 6
• Exporters must provide information on Commercial
  Invoices in the Shipping Bill. Wherever
  Commercial Invoice is different from a Tax
  Invoice, details of both have to be provided in
  the Shipping Bill.
• Rule 7
• GSTIN numbering scheme includes the state code.
  However, in the Shipping Bill concerning the
  field State code of origin, exporters must
  declare the state code from where export goods
  originated. The process remains the same as it
  was being done before.
• Rule 8
• The taxable value and Tax amount should be
  mentioned against each item in the Shipping Bill
  for processing the refund amount. The same GSTIN
  holder issued multiple tax invoices are allowed
  only in one Shipping Bill for the same consignee.

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• Documents and Procedures for Exports Under GST
• Export of Goods
• Exports under the new GST rule must acquire an
  IEC (Import Export Code).
• Businesses exporting goods that are exempt of
  IGST payments have to furnish LUT or a relevant
  bond.
• Documents of export must be attached to the
  relevant POs (purchase orders).
• While filing the Shipping Bill, exporters must
  include details as per the information mentioned
  in a tax invoice.

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• Any tax invoice furnished by an exporter must
  contain the details mentioned below
• Furnish an endorsement specifying that the supply
  is for export either with or without integrated
  tax payment.
• Name, GSTIN, and address of the supplier.
• Date and invoice number.
• Details of the recipient including the name,
  address, delivery address, and designation.
• Include the (HSN) Harmonized System of
  Nomenclature Codes of goods exported. Alongside,
  furnish an appropriate description.
• Include the quantity of the goods and specify the
  units count.
• Add the gross value of the goods, breakdown of
  costs into the price per unit.
• Signature of the authorized signatory of the
  supplies.

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• Shipping Bills can be used to claim refund
  provided that
• The person carrying the export goods files an
  export manifest and
• The applicant has filed forms GSTR-3 or GSTR-3B
  appropriately.
• Export of Services
• Under Section 2(6), IGST Act, 2017, services
  qualify as exports only under the following
  circumstances.
• The suppliers of services are from India.
• The recipients of services are located in a
  foreign country.
• The services are supplied to a foreign country.
  Unless mentioned specifically, the default place
  of supply for cross-border transactions will be
  the location of the recipient.
• It is qualified as exports when suppliers of such
  services have received payment in convertible
  foreign exchange rates.
• Suppliers and recipients of services are not
  merely establishments of a distinct person.

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Documents Required to Export Under GST On
exports carried out without the payment of IGST,
furnish the LUT or a relevant bond. Maintain the
Foreign Inward Remittance Certificate or Bank
Realisation Certificate to avoid incurring GST
charges. You can furnish them as proof of receipt
within the prescribed period of one year from the
date of export. Otherwise, GST is applicable to
transactions in which exporters do not take this
step.
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• Any document furnished under GST must include a
  service agreement. The issued tax invoice
  document must contain the following details
• An endorsement, specifying whether the supply is
  meant for export with or without payment of
  integrated tax.
• Name, address, and GSTIN of the supplier.
• Invoice number and date.
• Name and address of the receiver.
• HSN Code of services and a relevant description.
• The total value of services with a stage-wise
  breakdown (if any).
• Signature of the supplier or authorized
  signatory.
• As mentioned earlier about Aatma nirbhar,
  Imprezz.in is the best cloud accounting software,
  effectively helping Indias small businesses. The
  software is programmed with GST compliant
  invoices and quotations that enables
  self-employed and small business owners to create
  their invoices, quotes, and reminders. The
  cloud-based accounting software allows businesses
  to file GST returns directly on the portal in
  just a few clicks.

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Conclusion Amidst the on-going pandemic crisis,
several businesses have failed to file GST
returns on time despite the GST audit extension.
Not staying GST compliant can harm growing
business to a greater depth. By following these
rules and documentation, exporters and young
entrepreneurs can be relieved of the new taxation
policy. Instead of running all the errands,
businesses can switch to Imprezz accounting
software. Automate GST invoice processing and
returns filing to avail benefits and to make life
better for oneself and your employees. Stay
updated with GST rules and other relaxations,
subscribe to Imprezz invoicing software. We
offer a 14 days free trial software program for
small businesses in India. Log in to start
exporting under GST rules.
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