Welcome to your Ch 8: Zero Rated Supply Section 16 (1 to 5)
1.
(i) Zero rated supply are taxable supply but is being made zero by refunding not only tax on outward supply but also tax on inward supply.
(ii) All export supply whether of goods or services are zero rated supply. Even in few cases supplies made to SEZ developer or SEZ unit shall be treated as zero rated supply.
2.
(i) Person A is a manufacturer and domestic supplier. It manufactures Product Z which is exempt. For manufacture of Product Z it purchases Product X and Product Y. Both Product X and Product Z are taxable supply. Person A is eligible to avail ITC.
(ii) Person A is a manufacturer and exporter. It manufactures Product Z which is exempt. For manufacture of Product Z it purchases Product X and Product Y. Both Product X and Product Z are taxable supply. Person A is eligible to avail ITC.
3. Suppose in a case ITC availed is Rs. 10,000. Export supply of value Rs. 4,00,000. IGST payable is Rs. 30,000. Supplier has two options.
(i) Export under LUT but claim refund of Rs. 10,000.
(ii) Export on payment of IGST of Rs. 20,000 but claim refund of Rs. 30,000.
4. Location of supplier / exporter is in India. Location of recipient / importer is outside India. Place of supply is outside India.
(i) Export to USA in foreign currency to it’s own establishment but treated as distinct person as per Explanation 8 to IGST Act, 2017. It is export of service.
(ii) Export to Nepal in INR. It is export of service.
5. Satellite launch service is provided by ANTRIX Corporation Limited registered in GST (Andhra Pradesh) to -
(i) an Indian Company registered in GST (Andhra Pradesh). Place of supply as per S 12(8) is destination of goods which in other territory. Therefore it is an Inter-state supply.
(ii) a French Govt. Place of supply as per S 13(9) is destination of goods which in other territory. Therefore it is an Inter-state supply and also an export of service.
