★Zero rating of Exports under GST★
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★What is Zero Rating? By zero rating it is meant that the entire value chain of the supply is exempt from tax. This means that in case of zero rating, not only is the output exempt from payment of tax, there is no bar on taking/availing credit of taxes paid on the input side for making/providing the output supply.
★There is a general rule in international trade that 'Goods are exported taxes are not'. This means that there should be zero incidence of tax on the goods to be exported. Someone is not clear how this rule is implemented under GST. For this we shall explain to her the concept 'Zero rating of supplies'.
This video is developed as part of an initiative under the Niryat Bandhu Scheme of Government of India.
Disclaimer: This video is for information and educational purposes only. For detailed procedure you should refer to the Foreign Trade policy and the Handbook of Procedures available on dgft.
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