IGST Refunds with Benefits under Advance Authorization

If you are an Indian business owner or a startup founder, you must be aware of the various tax laws and regulations that govern your business operations. One such law that you need to be aware of is the IGST refund with benefits under Advance Authorization. This law can help your business save a considerable amount of money in terms of taxes and duties, and it is essential to understand its benefits to take advantage of them.

What is IGST?

Before we dive into the specifics of IGST refunds with benefits under Advance Authorization, let's take a moment to understand what IGST is. IGST stands for Integrated Goods and Services Tax, and it is a tax levied on the supply of goods and services across state borders in India. It is a type of indirect tax, which means that it is not paid by the end consumer but by the supplier or the service provider.

What is Advance Authorization?

Advance Authorization is a scheme implemented by the Indian government that allows exporters to import raw materials and capital goods without paying any customs duty. This scheme is designed to promote exports and make Indian products more competitive in the global market. The imported goods can be used to manufacture goods that are exported, and the duty that would have been payable on the imported goods is deferred until the exported goods are sold.

What are the benefits of IGST refunds with Advance Authorization?

Under the IGST refund with benefits under Advance Authorization scheme, businesses that have an Advance Authorization can claim a refund of the IGST paid on the goods they import. This refund is available on the goods that are imported for the purpose of export, and it can be claimed either as a refund or as a credit against future tax liabilities. This can help businesses save a considerable amount of money on their tax liabilities and improve their cash flow.

How to claim IGST refunds with Advance Authorization?

To claim IGST refunds with Advance Authorization, businesses need to follow the following procedure:

They need to file an application for the Advance Authorization scheme with the relevant government authority.
Once the authorization is granted, they can import the goods without paying any customs duty.
After the goods are imported, they need to file an application for the IGST refund with the relevant government authority within six months from the date of import.
After the application is processed, the refund will be credited to the business's bank account within a specified period.

Conclusion

The IGST refund with benefits under Advance Authorization scheme is an excellent opportunity for businesses to save money on their tax liabilities and improve their cash flow. By understanding the benefits of this scheme and following the necessary procedure, businesses can take advantage of this scheme and increase their competitiveness in the global market.