for export import

Is export and import are allowable in gst composition scheme????

note. Export and import means transaction made in outside of india
Replies (7)

yes in both cases u have to get register

importers and exporters cannot opt for composition scheme

no, indulge in interstate supplies

no, indulge in interstate supplies

check the definition of interstate supply in IGST sec 7, export and import included in inter state supply, hence he cannot opt for composition scheme
7. Inter-State supply.

inter state txn includes :-

Supply of goods and services imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce.


Supply of goods or services or both,-
[a] when the supplier is located in India and the place of supply is outside India;

[b] to or by a Special Economic Zone developer or a Special Economic Zone unit; or

[c] in the taxable territory, not being an intra-State supply and not covered elsewhere in this section, shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce.


so @ Sanjeev u cant opt composition scheme because export includes in inter state sale definition and according to composition rules u r not able to inter state sales

so u have to get proper normal reg

i hope it will be help u

Thank u

Section 7 of the IGST Act,2017

. Inter-Sta te supply.includes :-

Supply of goods and services imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce.

Supply of goods or services or both,-
[a] when the supplier is located in India and the place of supply is outside India;

[b] to or by a Special Economic Zone developer or a Special Economic Zone unit; or

[c] in the taxable territory, not being an intra-State supply and not covered elsewhere in this section, shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce

Hence, the transaction is akin to interstate supply. Hence, They would not be eligible for compostion scheme.

Bhardwaj

Consultant Indirect taxs

 

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