Mumbai, 7/9/2019 : Zero tax rate is charged on the goods and services exported by exporters in the GST system to promote goods and service exports from India, explained Finance Minister Sudhir Mungantiwar.
This helps our exports to survive the competition in International Market. Exporters will not need to pay any tax on exports and they get subtraction of tax paid on purchases. Exporters can receive this subtraction without paying Integrated Goods and Service Tax (IGST), exporting under bond or Letter of Undertaking (LUT) and in the form of unused input tax credit refund. Or they can claim for IGST refund on exports.
Letter of Undertaking can be submitted online. This provision can be used for one financial year. Exporters’ working capital is does not remain invested due to this. This is the best system of tax refund, told Shri. Mungantiwar.
90% refund is approved in seven days and a complete refund is approved in 60 days from the time exporters file correct and complete return claims, informed Shri. Mungantiwar.