Taxmann's PPT | Various Export Schemes and its Interplay with GST?

Export schemes in India A D V O C AT E S C J A I N ( M A N A G I N G PA R T N E R , R S A L E G A L S O L U T I O N S ) MOBILE – 9891086862 EMAIL- SCJAIN@RSALEGALSOLUTIONS.COM 937A, JMD MEGAPOLIS, SOHNA ROAD, SECTOR 48, GURUGRAM, W W W. R S A L E G A L S O L U T I O N S . C O M

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ABOUT TAXMANN Taxmann is the leading publisher on Tax & Corporate Laws in India We also maintain the largest and the most accurate online database on Income Tax, International Taxation, GST, Company & SEBI Law, Insolvency & Bankruptcy Code, FEMA Banking & NBFC, Competition Law, Accounts & Audit and Indian Acts & Rules.

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We have developed the National Website of the Income-Tax Department and we also maintain it with our technology and editorial support.

APPLICABILITY OF CUSTOMS, FTP, GST ON TENNECO GROUP © COPYRIGHT 2019, RSA LEGAL SOLUTIONS

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APPLICABILITY OF CUSTOMS, FTP, GST ON TENNECO GROUP © COPYRIGHT 2019, RSA LEGAL SOLUTIONS

Index Various types of Export Schemes Interplay with GST Expectations from FTP 2021-2026

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Various types of Export schemes

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Advance Authorization & DFIA

EPCG & Post Export EPCG MEIS SEIS RoDTEP

RoSCTL Duty Drawback Export Oriented Units Special Economic Zones © COPYRIGHT 2021, RSA LEGAL SOLUTIONS

Advance Authorization & DFIA Duty free inputs

Invalidatio n for indigenous procuremen t

Actual user condition

As per SION

Advance Authorizatio n

Min 15% value addition

EO to be fulfilled in 18 months

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AA valid for 12 months

Advance Authorization & DFIA DFIA Issued on post export basis

Duty free import of inputs

Min. value addition 20%

Valid for 12 months

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Sensitive items list

Transferable

EPCG & Post Export EPCG EPCG

Duty free import of capital goods

Export Obligation – 6 times duty saved

EO fulfilment – 6 years

Validity 18 months

Block wise fulfilment of EO

Post Export EPCG Scheme Import of Capital Goods on payment of duty

BCD remitted in the form of scrips

Freely transferable

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85% specific EO

Invalidation allowed

MEIS On export of Goods at the rates notified under Appendix 3B

Discontinued w.e.f.

01.01.2021

Last date for filing application is 31.12.2021 –NN 26/2015-20 dated 16.09.2021

No late cut provisions to apply after 31.12.2021

All applications would be time-barred post 31.12.2021

Maximum cap fixed at Rs. 2 Crore for the period of Sept -20 to Dec-20

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SEIS On export of notified services from India (Appendix 3D)

Appendix 3X notified for FY 2019-20

Last date for filing application is 31.12.2021 –NN 26/2015-20 dated 16.09.2021

Maximum benefit capped at INR 5 crores

No late cut provisions to apply after 31.12.2021

All applications would be time-barred post 31.12.2021

5 services excluded from Appendix 3X

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RoDTEP

Effective 01.01.2021 – NN 19/201520 dated 17.08.2021

FOB value of goods exported

Independent of realization of export proceeds

E-scrips to be issued

Appendix 4R notified for rates

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Exclusion list issued vide NN 19/201520 dated 17.08.2021

3 special categories still under consideration

RoSCTL Scheme Rebate of State and Central Taxes and Levies on export of garments/apparel/made ups falling under Chapter 61/62/63 of the Customs Tariff Act. Rebate granted in the form of freely transferable electronic duty credit scrips similar to MEIS E-scrips can be used for payment of import duties similar to MEIS

Scheme extended till 31.03.2024

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Duty Drawback

Duty Drawback Section 74 - Reexport of goods

Section 75 - Export of manufactured goods All Industry Rate of Duty Drawback

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Brand Rate of Duty Drawback

Export Oriented Unit (EOU) scheme Entire production of goods/services to be exported (except permissible DTA sales)

Can procure raw materials/capital goods duty-free, through imports or domestically Minimum investment of INR 1 crore required in plant and machinery to be considered as an EOU Eligible for refund/ITC of GST paid on domestic procurement

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Special Economic Zone (SEZ) Foreign Territory for purpose of authorized operations Duty-free import/domestic procurement of goods for development, operation and maintenance Supply of goods/services to SEZ are zero rated under IGST Act, 2017

Supply to or by any SEZ to be Inter-state supply under GST law Supplier can supply the goods to SEZ under LUT or on payment of IGST and claim the refund thereafter

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Interplay with GST

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Interplay with GST Export of goods or services: Zero-rated supply.

Exports under AA to be made under LUT only

Exemption from payment of IGST may be availed on imports under Advance Authorization/EPCG

Supplies made by DTA to SEZ are zero rated

Imports by EOU are exempt from payment of IGST and compensation cess

Procurement by merchant exporter at reduced rate of 0.1% GST

GST will not be levied on Zero rated supplies of any kind of goods or services.

GST exempt on sale of Duty Credit Scrips

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Export of goods/services vis-à-vis GST Benefits

Mandatory Export under LUT

Refund of IGST

Supplies made towards fulfilment of EO under the advance authorization scheme

Refund of ITC

Exports by an EOU

Refund in case of export of exempted goods

Supplies made by merchant exporter

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EOU in the GST regime Imports • Exemption from • BCD • Social Welfare Surcharge • Anti-dumping duty • IGST • Compensation Cess

Domestic Procurement • GST payable • Supplies qualify as ‘deemed export’ supplies • The supplier / the EOU entitled to either avail: • refund of GST paid; or • ITC of GST paid • Benefit of the advance authorization scheme and EPCG scheme available to supplier

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DTA clearances of finished goods • GST payable • BCD exemption to be surrendered, if any availed at input stage.

• Whether any interest is payable?

• Manner of Calculation ?

Expectations from FTP 2021-2026

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Expectations from FTP 2021-2026 Implementation of District Export Hubs

Infrastructure upgrade and digitisation R&D service exports Enforcing RoDTEP scheme for SEZ/EOU’s © COPYRIGHT 2021, RSA LEGAL SOLUTIONS

Expectations from FTP 2021-2026 E-commerce exports

Easy credit WTO compliant export incentives Targeting a $5 trillion economy © COPYRIGHT 2021, RSA LEGAL SOLUTIONS

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About RSA Legal RSA Legal Solutions is a Law firm, based in Gurgaon, founded by Mr. S.C. Jain, having experience for more than 37 years. The firm specializes in the Laws relating to Customs and Indirect taxation in Indian, International Trade and other allied laws.

RSA has partners from top law firms and Big 4s. RSA has a team which is an eclectic mix of experienced Lawyers and industry professionals with a wide array of functional expertise and domain exposures.

RSA has successfully found a place in the list of Finalist for “Tax Law Firm of the Year 2021”

by Asian Legal Business (ALB) Awards. RSA recently featured in the Top 20 recommended lawyers in India by Business Connect magazine in 2019-2020. RSA has been chosen in top 5 finalist in the category of "Best Start up law firm of the year" award by the prestigious IDEX Legal Awards. Also, the firm was awarded with the “Top 10 GST Consultants Award” by the famous Insight Success Magazine.

Our legal team has a well-deserved reputation of excellence in providing smart, sensible, and cost-effective legal and business solutions for our clients.

RSA LEGAL SOLUTIONS

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Core Areas of Practice and Expertise Customs, FTA and Allied Laws

International Trade laws

GST and other erstwhile laws

Start Up Services

Income Tax

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Contract Drafting

Other Allied Laws

Foreign Trade Policy

Other Areas

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Key Persons He has a rich experience of more than 37 years in the field of Indirect taxes. As a part of his professional career, he has worked for 20 years as Customs and Excise officer in the Central Government which gave him the leverage to analyse the issues with much more practical approach and providing acceptable solutions. He also has an enriching experience of more than 11 years as a leading partner of the Customs team in the law firm of Lakshmikumaran and Sridharan. He has expertise in the field of Customs, GST, FEMA, Anti-dumping, SEZ, erstwhile indirect tax laws and S.C. Jain (Advocate) various allied laws.

Managing and Founding Partner

RSA LEGAL SOLUTIONS

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Key Persons

Anshul Mittal (Advocate) Partner

Shweta Jain Gupta (Advocate) Partner

She is Post Graduate in Corporate laws and Indirect-taxation (L.L.M.), and a qualified lawyer.

She has worked as a Professor of Law in Symbiosis Law University for a couple of years which gives her leverage to analyse and interpret law in a better way. She has a very fine experience in commercial laws including Indirect-taxes. In her journey at RSA she has provided various legal opinions, drafted reply to the SCNs, appeals, filed refunds, represented before various authorities and undertaken tax due-diligence. She is well-versed with Advisory as well as Litigation and Compliance in the indirect taxation. She has worked extensively on the the GST Law and is well versed with the GSTN Portal

She is a lawyer and a qualified Company Secretary. She has an experience of more than 12 years in indirect tax Law. Before joining RSA, she has worked in the law firm of Lakshmikumaran and Sridharan and PwC. She has provided various opinions, advises, health check-ups, due diligence, indirect tax litigation including drafting of replies to show cause notices and appeals and representing before CESTAT and other adjudicating authorities.

She has extensively worked on GST and has also written a book published by Taxmann. She has been advising the clients in the area of tax planning, advisory and compliances.

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Key Persons Rajat Dosi has extensive experience in handling indirect tax matters specifically customs, GST, erstwhile indirect tax laws. He also has indepth knowledge of the SEZ Scheme and provisions of the FTP. He has represented a number of clients for their indirect tax matters at various forums including the appellate tribunal, settlement commission, first appellate authority, lower adjudicating authorities, revisionary authority, etc. He is an avid writer of articles and written many articles on online and offline journals. Prior to joining RSA Legal Solutions, he has worked as a part of the well-known Law firm of Lakshmikumaran and Rajat Dosi (Advocate) Sridharan and Trilegal.

Partner

He is an advocate by profession & has worked with various organizations dealing in Indirect taxes. He has worked with KPMG for a couple of years in its indirect taxation team where he got exposed to variety of legal advisory and compliance related issues. In his practice at RSA he has given various legal opinions, drafted reply to the SCN’s, appeals, undertaken health check-ups and represented before various authorities. He is well versed with Advisory as well as Litigation and Compliance in the indirect taxation and have a cutting edge knowledge and expertise in DGFT related work.

Abhishek Jain (Advocate) Partner RSA LEGAL SOLUTIONS

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Thank You S.C. Jain-Managing Partner 9891086862, 8588007302 scjain@rsalegalsolutions.com Abhishek Jain-Partner 9873859616 abhishek@rsalegalsolutions.com Rajat Dosi-Partner CHARTERED ACCOUNTANTS FABRIKAM RESIDENCES 8800560580 rajat@rsalegalsolutions.com

Anshul Mittal-Partner 8800813451 anshul@rsalegalsolutions.com

Shweta Jain Gupta-Partner 9891122735 shweta@rsalegalsolutions.com

THANK YOU! 937A, JMD MEGAPOLIS, SOHNA ROAD, SECTOR 48, GURUGRAM WWW.RSALEGALSOLUTIONS.COM MOBILE – 9891086862 EMAIL- SCJAIN@RSALEGALSOLUTIONS.COM

© COPYRIGHT 2021, RSA LEGAL SOLUTIONS