Due date clarification for AY 2018-19

Now that GST is here and the whole nation is gearing up to implement it starting tomorrow, let us throw some light on what are the basic GST rules for a freight forwarder for export shipments. The data has been compiled from various sources.The rate of tax on export freight  @ 5%.  when it is on collect terms Under Rule 13 of IGST, this kind of a transaction is not taxable. GST is applicable on prepaid freight and not applicable on collect freight does this mean that more and more shipments will become FOB. As per IGST rule 13, this transaction is not taxable.

Now that GST is here and the whole nation is gearing up to implement it starting tomorrow, let us throw some light on what are the basic GST rules for a freight forwarder for export shipments. The data has been compiled from various sources.The rate of tax on export freight  @ 5%.  when it is on collect terms Under Rule 13 of IGST, this kind of a transaction is not taxable. GST is applicable on prepaid freight and not applicable on collect freight does this mean that more and more shipments will become FOB. As per IGST rule 13, this transaction is not taxable.Authorisation and Customs Clearances for both imports and exports may be granted on self-declaration basis; nput-Output norms may be fixed on priority within 60 days by the Norms Committee. Exemption from furnishing of Bank Guarantee for schemes under FTP, unless specified otherwise anywhere in FTP or HBP. Exemption from compulsory negotiation of documents through banks. Remittance / receipts, however, would be received through banking channels. Two star and above Export houses shall be permitted to establish Export Warehouses as per Department of Revenue guidelines. Three Star and above Export House shall be entitled to get benefit of Accredited Clients Programme (ACP) as per the guidelines of CBEC (website:https://cbec.gov.in). The status holders would be entitled preferential treatment and priority in handling of their consignments by the concerned agencies. Manufacturers who are also status holders (Three Star/Four Star/Five Star) will be enabled to self-certify their manufactured goods (as per their IEM/IL/LOI) as originating from India with a view to qualify for preferential treatment under different preferential Trading agreements(PTA), Free Trade Agreements (FTAs), Comprehensive Economic Cooperation Agreements (CECA) and Comprehensive Economic Partnership Agreements (CEPA). Subsequently, the scheme may be extended to remaining Status Holders. Manufacturer exporters who are also Status Holders shall be eligible to self-certify their goods as originating from India as per para 2.108 (d) of Hand Book of Procedures. Status holders shall be entitled to export freely exportable items (excluding Gems and Jewellery, Articles of Gold and precious metals) on free of cost basis for export promotion subject to an annual limit of Rupees One Crore or 2% of average annual export realization during preceding three licensing years, whichever is lower. For export of pharma products by pharmaceutical companies, the annual limit would be 2% of the average annual export realization during preceding three licensing years. In case of supplies of pharmaceutical products, vaccines and lifesaving drugs to health programmes of international agencies such as UN, WHO-PAHO and Government health programmes. The annual limit shall be upto 8% of the average annual export realisation during preceding three licensing years. Such free of cost supplies shall not be entitled to Duty Drawback or any other export incentive under any export promotion scheme. DUTY EXEMPTION/REMISSION SCHEME. This Scheme enables exporters’ duty free import of inputs for export production, including replenishment of input or duty remission. Advance Authorisation (AA) (including Advance Authorisation for Annual Requirement) Allow duty free import of input, physically incorporated in export product, on the basis of Standard Input Output Norms (SION) or Self Declaration. Minimum 15% value addition is required to be achieved. Period for fulfillment of export obligation is 18 months from the date of issue of Authorization. Duty Free Import Authorisation (DFIA) Issued to allow duty free import of inputs and is exempted only from payment of Basic Customs Duty. Additional Customs Duty/Excise Duty paid may be adjusted as CENVAT credit. Value addition required 20%.