GST For EXIM

Exporters to apply NEW GST LUT for FY 2024-25

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As per the GST Rules and Procedure, Exporters exporting without payment of tax, needs to apply for Letter of Undertaking (LUT). The LUT is valid for every financial year.

Thus, as we come close to the financial year 2023-24 and the new FY 2024-25 will begin from 01st April 2024.

We wish to draw your attention that exporter must visit the GST portal and submit the new Letter of Undertaking (LUT) for the Financial Year 2024-25.

The Procedure is simple and will take not more than 5 mins online.

So to avoid any last minute hassles and challenges, request exporters, to visit the GST Portal today and submit and get their new LUT ARN No. for FY 2024-25.

Regards
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No IGST on Ocean Freight under RCM for Importers from 01.10.2023

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The Goods and Service Tax (GST) had provided 5% IGST on services of “Transport of goods in a vessel including services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India”

The GST Notificaiton No. 10/2017 – Integrated Tax (Rate) also made the tax payable on Reverse Charge Basis (RCM) vide sr. no. 10 of the notification in hands of Importer as defined under the Customs Act, 1962

Now, in response to various legal cases and Supreme Court judgement in the matter, the government has notified to omit the entry at sr. no. 10 from the above notification of RCM.

GST Notification No. 13/2023 – Integrated Tax (Rate) dated 26.09.2023 has been issued for the same. The notification would come into force from 01st October, 2023.

Thus, providing a relif to the importers from paying IGST on Reverse Charge Basis on the ocean freight component especially under CIF / CFR contracts.

It must be noted, However, Importer still has to pay IGST at the time of Import along with other Import duties at the time of filling Bill of Entry when goods are imported into India.

Importers may refer the notifications for further details.

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