Goods and Services Tax (GST) on Overseas Transactions in India

On November 14 2019, Corporate Accounting Services Senior Associate, Ishtaa Jain, presented on the impact of the Goods and Services Tax (GST) on overseas transactions in India.

The Goods and Services Tax in India

Introduced in 2017, the GST is a comprehensive, multi-stage, destination-based tax that is imposed on every valuable addition. The tax replaces various federal and state levies paving the way for a simplified tax structure in India.

During the webinar, Ishtaa explained the impact of GST on ease of doing business in India and how it has been able to improve the competitiveness of Indian manufactured goods in International markets, resulting in a boost to Indian exports and the ‘Make in India’ campaign.

Exports Under the Goods and Services Tax

Under the GST regime, exports are treated as ‘zero-rated supplies’. That is, supplies on which the GST rate is fixed as zero. It is the endeavour of the government to ensure that exports are encouraged by providing necessary tax breaks.

Ishtaa adopted the Q&A methodology to elucidate the impact of GST on exports by answering questions such as: ‘Is receipt of foreign exchange mandatory for export of goods?’, ‘What supplies are considered zero rated supplies?’, and ‘How is zero rated supply different from exempt or nil rated supply?’.

Further, imports under the GST regime were discussed in great lengths along with the concept of blocked credit for a non-resident taxable person.

Towards the end of the session, Ishtaa briefly shared how Dezan Shira & Associates can assist foreign companies with their India expansion plans and answered the queries of participants to conclude the webinar.

To access the webinar recording, please click here.

Learn More About GST and Doing Business in India

To learn how Dezan Shira & Associates can support your business and tax needs in India, please click here.

For an extensive catalogue of business resources, please feel free to subscribe to our investor resource library, Asiapedia. Here, you can find GST related resources and articles including The Good and Services Tax in India – Impact on International Trade, Types of GST Returns in India, GST Composition Scheme in India, and more.

To stay up to date with news and publications concerning several aspects of doing business in Asia, visit Asia Briefing.

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