GST Applicability & Tax Rates on Export of Goods & Service

GST Applicability on Export of Goods:

1. Zero Rated: Exports of goods are considered "zero-rated" under GST in India. This means that the GST rate applicable to the export of goods is 0%, effectively making the exports tax-free. Exporters can claim a refund of the input GST paid on the procurement of goods and services used in the export process.
   
2. Export Procedures: To claim zero-rated benefits, exporters must follow the prescribed export procedures and documentation, including filing a shipping bill, submitting a Letter of Undertaking (LUT) or a bond with the authorities, and maintaining proper records.
   

GST Applicability on Export of Services:

1. Zero Rated: Similar to the export of goods, the export of services is also considered "zero-rated" under GST. This means that the GST rate applicable to the export of services is 0%, and exporters can claim a refund of the input GST paid on input services and goods used to provide export services.
   
2. Place of Supply Rules: Determining whether a service qualifies as an export depends on the place of supply rules. Generally, if the location of the supplier of service is in India, and the place of supply of the service is outside India, it qualifies as an export of service.
   
3. Payment in Foreign Currency: Exporters of services must receive payment in convertible foreign exchange or in Indian rupees wherever permitted by the Reserve Bank of India (RBI).
   

Please note that specific industries and services may have additional rules and requirements for claiming zero-rated benefits on exports, so it's crucial to consult with a tax expert or refer to the latest GST regulations and notifications for detailed information.

GST Rates on Other Transactions:

For domestic transactions within India, GST rates can vary depending on the type of goods or services provided. The GST rate structure includes various slabs, such as 5%, 12%, 18%, and 28%, with some goods and services falling under specific rates or exemptions.

Again, I must emphasize the importance of checking the most current GST rates and regulations from official sources, as they may have changed since my last knowledge update in September 2021.

Created & Posted by Jai Sharma 

Income Tax Expert at TAXAJ

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