Question1:

One of my Client is Fruit and Vegetable Exporter – GST is Not applicable or Nil Rated on the same. But packing material used for export is taxable under GST.
In this case, can we claim refund of tax under section 96 of CGST Act 2017, if we purchase taxable packing material which is used for Export of Fruits and Vegetable;  or Can we Purchase said material on concessional rate of Tax. For the said activity under previous law we executed Bond and obtain Certificate (Annexure-45) then we procure material from supplier without Excise Duty. Please elaborate us details procedure under GST or can we claim refund of tax after export?

Answer:

We understand your question as follow Your final products are exempted from GST but Inputs like packing material etc are Taxable the finished goods are to be exported Your concern is cost of GST paid on inputs Our reply is as follow The refund ITC is possible as per Section 49 of CGST Act only if the credit is available but cannot be utilized. The refund of tax is also permitted if the tax is paid on outward supply this is as per Rule 96 read with Section 49. Both of the above are not applicable in your case  The possible rout is go for advance authorisation and take tax free input if it is not possible because of low quantum of input or because of other technical reasons then go for brand rate fixation and take drawback of the GST paid on inputs (Reply dt. 26/10/2017)