Export promotion under GST :
Exports are priority of any country.
Goods and services are to be exported, taxes are not to be exported. WTO stipulates free and fair global trade. Giving export incentives will be against principle of fair trade and hence export incentives are not allowed under WTO. However, goods and services can be made free of domestic taxes.
Supplies to SEZ unit and SEZ Developer are treated at par with physical exports.
Provisions in CGST Act have been designed by make exports tax free.
Export benefits under GST – In relation to GST, following are the concessions/incentives for exports :
(1) Exemption from GST on final products or
(2) Refund of GST paid on inputs.
Exporting units need raw materials without payment of taxes and duties, to enable them to compete with world market. Government has devised following schemes for this purpose :
(a) Special Economic Zones at various places where inputs are allowed to be imported without payment of duty and finished goods are exported
(b) Export Oriented Undertakings (EOU)
(c) Duty Drawback Scheme
(d) Schemes of Advance Authorisation, DEPB and DFIA.
Elaborate procedures have been prescribed for the above, to ensure that the benefits are not misused.