Export incentives/Duty draw back

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This discussion clarifies whether export incentives, such as MEIS/SEIS scrips, are subject to GST. It explains that export incentives in the nature of drawback are not considered supplies and therefore not taxable under GST. If these scrips are sold, they fall under HSN 4907 and are exempt from GST, although input tax credit related to them may need to be reversed.

RAMAKRISHNA K

RAMAKRISHNA K (Querist)
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07 May 2022 we are exporting some products and we are getting Export incentives ..
is that amount taxable under GST act ?

CA Altamush Zafar

CA Altamush Zafar (Expert)
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07 May 2022 Export incentives in nature of drawback are not supplies therefore no gst applicable

CA Akshay Hiregange

CA Akshay Hiregange (Expert)
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09 May 2022 Export incentives such as MEIS/SEIS scrips can be sold in the market at 85-95% of its value. If done so it would cover under HSN 4907 as is exempt from GST. ITC in relation to such supply would need to be reversed as per Rule 42/43

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