Q. What about scenario about GST in Export Import Business?
A. There is NO GST ON PRODUCT & SERVISES if you source for the purpose for exports. GST for exports is ZERO Rated.
Q. Wow, that’s nice but I have read in many newspaper that exporter are facing trouble in getting refund from government
A. The biggest problem is that most exporter still avail the Drawback facilities, drawback scheme is draw back (Pull something back) i.e. refund of tax based on fix rate defined based on each products on www.indiantradeportal.in , most CHA still follow old practice to avail DBK, they don’t even ask to exporter and file DBK on shipping bill and exporter gets it on his bank account. But if you avail the DBK then GST Refund you will not get, because how government can provide you refund twice? So you need to choose one , as DBK was old scheme its rates are low & GST rates are high in India so its advisable to get GST refund, for agro products there is no GST but government has provided good DBK rates for Agri products to boost its exports so in that case DBK has to be avail.
Following precautions you need to take while getting GST Refund.
Furnish LUT Online from your GST Portal www.gst.gov.in ->User Services ->Furnish Letter of Undertaking
(You can do it online in 30 seconds & just green tick checkbox and download you acknowledge your LUT receipt from portal)
Proper Purchase Bill with IGST/CSST/SGST
(0.1% GST Bill if goods sourced against LUT, else full proper purchase bill)
Your GSTN Details in Shipping Bill (Provide your GST details to your CHA, as he will file your shipping bill)
No “Drawback” has to be availed (Tell your CHA 1000 times that you don’t need DBK, you only need GST refund)
EGM Filing by Shipping Line (you don’t need to do anything on this, it would be file by shipping line)
Details uploaded in GSTRFD – 01 (Ask your CA to file proper GSTRFD -01 form online and also take the GST refund on box, packing material, local transportation services, etc if any along with product)
Q. For startups what is the cost of hiring CA [Charter Accountant]?
A. Startups generally require CA for filing business returns, they generally charge 3500 to 5000 for a whole year.
Q. For startups what is the cost of hiring CHA [Custom House Agent] / Custom Broker?
A. Most CHA’s help for FREE they charge only at the time of deal for your company else, not.
Q. What is the scope of becoming CHA? How to become CHA?
A. One can become CHA by passing out government regulation 7 exams called G Pass & H Pass, in a month 2 to 3 CHA come to me for help and asking for orders , many told me that they will work for only 1000 INR profit per container . i.e suppose logistic, shipping and clearing cost you 25,000 to make 25,000 KG goods available at Jebal Ali port UAE, they will charge only 26,000, out of it 25,000 is CHA own expenditure for shipping line and forwarders, so they earn only a profit of 1000 from you at a time of deal.
The life of CHA has become same as engineers, dying for good job.
So there is no reason in becoming a CHA big fish prevail in this, moreover big fish has got huge contact at in custom & port, so they provide cheaper and fastest port to port & door to door services for all.
Whereas there is huge scope in Export Import business as India share is global exports is only 2%, so jump in now to gain an edge….
Q. Are CHA compulsory in this export import business?
A. No CHA are not compulsory for this export import business , only startup exporter use CHA, because for startups shipping line & Airline generally do not encourage, once you reach the frequency of 100 containers then shipping line will approach you directly and they will do all formalities for you and CHA’s would be kicked out.