Merchant exports generate foreign exchange for the country like normal exports and are mainly engaged in the export of goods and not services. Here’s all about Merchant Exporters and their export process in the GST regime.
Despite several provisions, there have been many cases of fraudulent GST refunds and export frauds. Here we cover the reasons for export frauds and the proposed amendments issued by the government to curb export frauds.
Advance Authorisation Scheme (AAS) is a tax and duties neutralization scheme under the foreign trade policy (FTP). Under the scheme, an exporter can import duty-free goods (subject to export obligation) to be physically integrated with the export goods.
The supply goods and/or services is done under bond or LUT, without payment of IGST. In such scenario, the exporter can claim a GST refunds on export of the unutilized ITC available for CGST, SGST and IGST.