Though people complain that businesses bring in losses, deep inside everyone knows the fact that businesses are indeed the propellant that shoots our rocket of success! Not every business involves a heavy investment, but surely every business that needs to increase its customer base globally should start exporting!
Actually, most people feel exports aren’t their cup of tea, due to various reasons out of which the high cost involved in the exporting field tops the list. If you too are in the same dilemma, then this article is surely for you. With many government policies and schemes coming up, this pandemic has really brought businesses and industries into the limelight. One already in practice criterion is that the exports are considered as “Zero Rated Supply” under GST [section 16 of the IGST Act,2017] Knowledge is power, said, one wise person. You always earn more when you learn more about the field you are into. Exporting is one such field that needs much of your awareness to yield better results.
Export with Reimbursements :
Exporting helps you make your product reach its target audience globally. It’s also necessary for a product to sustain the long run. There are many advantages that the government provides for export enthusiasts. Reimbursement of GST on exports is one such advantage. The government reimburses 18% of the GST paid on exports. That is, there are no Taxes on Export of Goods, on producing the bill. However, you can avail your reimbursements in three ways.
Pay and Get Refund :
The government offers reimbursement of GST that can be availed in this mode called Pay and get a refund, in which you pay the whole amount while you export and get a refund on your GST once you file your bills. So, this way you get a cashback of 18% on the amount you’ve paid on your goods.
Purchase by Letter of Undertaking :
The exporter can submit his LUT and claim a refund of accumulated Input Tax Credit or he may export on payment of integrated tax and claim refund. Now, Exporters can claim a refund on zero-rated supplies under two options!
Purchase material from Supplier :
The exporters can also purchase goods from a supplier at a 0.1% cost on the material if he is a member of the Export Promotion Council by exhibiting his certificate provided by the council. The supplier who supplies goods at the concessional rate is also eligible for a refund on account of an inverted tax structure as per the provisions.
Global EXIM; Your Export Partner
If you are into exporting, Global Exim is surely your Export Partner. It provides you the necessary awareness and information regarding the Export field, you have been waiting to prove your talent at. We at Global EXIM provide quality training for making your export experience a cakewalk.