Packing and labelling imported goods don't confer Indian-origin status

We want to import some items from China and re-export them to USA after repacking and relabelling. Para 11.31 of the FTP includes repacking and labelling in the definition of manufacture. In that case, can I treat the goods as  Indian origin and ask for a non-preferential certificate of origin?

 

No. Para 2.93(a)(ii) of the HBP lists certain activities that include repacking and labelling, which alone will not be adequate to confer the status of ‘Indian origin’ for the export goods. Therefore, you cannot treat the imported goods that are subject only to repacking or labelling as of Indian origin and ask for non-preferential certificate of origin. 

 

What is the difference betw­een rupee vostro accounts (RVA) and special rupee vostro accounts (SRVA)? 

The balances in the RVAs are built through inward remittances in freely convertible currencies. Besides trade-related remittances, cross-border transfers of foreign exchange by individuals can be made through RVAs. Indian banks need no approval from the Reserve Bank of India (RBI) for opening RVAs for foreign banks. The balances in the RVAs can be converted into foreign currency without restrictions and used for payments within India or abroad without any special restrictions. SVRAs can be opened only with RBI appro­val. SVRAs can be used for settling import and export transactions expressed in Indi­a­n rupees. The balances in the SVAs can be utilised only for specified investments in India.. 

While applying for EPCG authorisation, we are requi­red to give FOB value of exports made during the previous three financial years.  Now, in the case of many exports, consignments paym­ents may not have come when we apply for EPCG authorisa­tions and so, we may not have the e-BRCs for such shipments. In that case, can we reckon the FOB value on the basis of value shown in the shipping bill, which may not be the actual FOB value realised? 

Wherever e-BRCs are available, you can use the FOB values shown there. Where e-BRCs are not available, you can take the value shown in the shipping bill and work out the FOB value after deducting the freight, marine insurance, and other expenses incurred after shipment by you. You must discuss the methodology with your chartered accountant, who has to certify Appendix-5B, which is required to be submitted along with your EPCG application.. 

Our turnover is less than Rs 5 crores but still, we are considering a switch over to e-invoicing. What are the advantages of e-invoicing?

 

The main advantage of e-invoicing is that your GSTR-1 returns get prepared automatically from the available data and so the errors that can arise from manual entries while preparing the returns also get reduced. Secondly, your customer comes to know about your invoice immediately and so, getting an input tax credit is also not a problem. Third, your e-way bills can be generated using the same e-invoice data. Finally, your tax authorities also get the information immediately and such quick access to data helps better monitor and prevent fraud.