Lok Sabha Question No. 1 (STARRED), answered on 2018-02-02
Subject: GST Exemption to Exporters
Ministry: FINANCE
Asked by: SUKENDER REDDY GUTHA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

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## LOK SABHA STARRED QUESTION No. 1 TO BE ANSWERED ON FRIDAY, THE 2 ND  FEBRUARY, 2018 MAGHA 13, 1939 (SAKA)

## QUESTION

## GST EXEMPTION TO EXPORTERS

## *1. SHRI GUTHA SUKENDER REDDY:

Will the Minister of FINANCE be pleased to state:

- (a) whether  the  Government  has  received  any  representation  from  the  exporters seeking quicker refund of duties, exemption of Goods and Services Tax (GST) for merchant exporters and simpler tax compliance for small traders;
- (b) if so, the details thereof;
- (c) whether the Government has taken any decision in the matter and if so, the details thereof and if not, the reasons therefor; and
- (d) the stand of the Government in this regard?

## ANSWER FINANCE MINISTER

(SHRI ARUN JAITLEY)

(a) to (d) A Statement is laid on the table of the House.

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STATEMENT AS REFERRED TO IN REPLY TO PARA A TO C OF LOK SABHA STARRED QUESTION NO 1 FOR ANSWER ON 2 ND  FEBRUARY 2018/ MAGHA 13, 1939 (SAKA) REGARDING GST EXEMPTION TO EXPORTERS

- (a) & (b) Yes Sir. Various representations have been received from trade and industry regarding speedy disposal of refund claims,  exemption  from  payment  of integrated tax to merchant exporters and reduction in compliance requirements for small traders. The representations were examined and placed before the GST Council for policy decisions in this regard.
- (c) & (d) Yes sir. Some of the important decisions taken by the GST Council in this regard are as follows:
- a. Quicker refund of duties:
- i. Detailed procedure for filing, processing and sanction of refund claims have been laid down in two Circulars issued by the Central Government.  Further,  a  Circular  has  been  issued  on  solutions  to common errors in filing of refund of IGST paid on export of goods.
- ii. Provision made for manual processing of online refund claims of IGST paid on export of goods.
- b. GST Exemption to merchant exporters:
- i. Merchant exporters have been entitled to procure goods at a minimal rate of tax of 0.05% Central tax and 0.05% State tax or 0.1% Integrated tax.
- c. Simpler tax compliance for small traders:
- i. Increase in aggregate annual turnover threshold for eligibility under the composition  scheme  from  Rs.  75  lakh  to  Rs.  one  crore  for  27  States (including Jammu & Kashmir and Uttarakhand).
- ii. Increase in the aggregate annual turnover threshold for eligibility under the  Composition  scheme  from  Rs.  50  lakh  to  Rs.  75  lakh  for  Special Category  States  (as  specified  in  sub-clause  (g)  of  clause  (4)  of  article 279A of the Constitution) other than Jammu & Kashmir and Uttarakhand.
- iii. Taxpayers having annual turnover of up to Rs.1.5 crore in the previous year provided with an option to file quarterly Returns.
- iv. Registered persons making supply of goods to make payment of tax on issuance of invoice and not at the time when advances are received.
- v. Suspension  of  the  application  of  reverse  charge  mechanism  under Section 9(4) of the CGST/SGST Acts, 2017 and Section 5(4) of the IGST Act, 2017 till 31 March, 2018 for all categories of registered persons. vi. Uniform rate of tax @1% under Composition scheme for manufacturers and  traders.  The  turnover  of  taxable  goods  to  be  considered  for eligibility for the Composition scheme for traders. vii. Supply of exempted services by Composition taxpayer will be allowed and  the  same  will  not  be  taken  into  account  while  computing  the aggregate turnover. viii. Amount of late fee payable for delayed filing of return in Form GSTR-3B by  a  taxpayer  whose  tax  liability  for  the  month  was  'Nil'  reduced  to Rs.20/- per day (Rs.10/- per day each under CGST & SGST Acts) subject to maximum Rs.5000/- under each Act from October, 2017. ix. The  amount  of  late  fee  payable  for  delayed  filing  of  return  in  Form GSTR-3B by other taxpayers reduced to Rs. 50/- per day (Rs. 25/- per day  each  under  CGST  &  SGST  Acts)  subject  to  maximum  Rs.5000/under each Act from October, 2017.
- x. The filing of returns by the taxpayers has been simplified by continuing the GSTR-3B return up to March 2018. The filing of GSTR-2 and GSTR-3 returns has been kept in abeyance till further notice.

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