Explain in brief, how the imports and/or exports will be taxed under the GST law and whether any set off will be available as Import Tax Credit (ITC) of the IGST paid on such imports and/or exports.

All imports/exports will be deemed as inter-State supplies for the purpose of levy of tax under Goods and Services Tax (GST) and be taxed under IGST Act. The incidence of tax will follow the destination principle and the tax revenue will accrue to the State where the imported goods and services are being consumed. Full and complete set-off will be available as ITC of the IGST paid on the import of goods and services. Exports of goods and services will be zero rated. The exporter has the option either to export under Letter of Undertaking (LUT)/Bond without payment of duty and claim refund of ITC or pay IGST at the time of export and claim refund of IGST. The IGST on import of goods is leviable under the provisions of the Customs Act, 1962 read with Customs Tariff Act, 1975. While IGST on import of services would be leviable under the IGST Act.