Maharashtra VAT Return Filing Periodicity FY 2017-18
January 23, 2019Check GST Registration Number
January 24, 2019
Type of Goods Exporter
- Manufacture Exporter
- Merchant Exporter
Merchant Exporter means a person engaged in trading activity for exporting of goods. Merchant Exporter procures goods from the manufacture and export same in his firm name. Merchant Exporters buy goods from the Indian manufacturers and sell them into international market. They may not have their own manufacturing unit or processing facility.
0.1% GST on Supplies to Merchant Exporter
With recent changes of indirect tax GST introductions , the Council noticed the major difficulties for the export sector are on account of delays in refunds of IGST and input taxes on exports. Due to delay of taxes which ideally resulting into blockage of working capital to export business
To prevent cash blockage of exporters due to upfront payment of GST on inputs etc. the Council approved new scheme. Merchant exporters will now have to pay nominal GST of 0.1% for procuring goods from domestic suppliers for export. Merchant exporter can buy goods at 0.1% for export of goods. In article we talk about GST On Supplies to Merchant Exporter.
Conditions for buying of goods at 0.1% for Merchant Export
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- Supplier shall supply goods to Merchant Exporter on tax invoice.
- Merchant export shall export goods with 90 days from date of tax invoice.
- Merchant Exporter shall mention supplier GST number & tax invoice number on shipping bill , bill of export etc
- Merchant Export shall get registration with an Export Promotion Council or a Commodity Board recognised by the Department of Commerce.
- Place PO on Supplier : – the registered recipient shall place an order on registered supplier for procuring goods at concessional rate and a copy of the same shall also be provided to the jurisdictional tax officer of the registered supplier
- the registered merchant exporter shall move the said goods from place of registered supplier – (a) directly to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be exported; or (b) directly to a registered warehouse from where the said goods shall be move to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be exported;
- when goods have been exported, the registered recipient shall provide copy of shipping bill or bill of export containing details of Goods and Services Tax Identification Number (GSTIN) and tax invoice of the registered supplier along with proof of export general manifest or export report having been filed to the registered supplier as well as jurisdictional tax officer of such supplier.
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Important Documentation for Merchant Exporter
- Buy Goods from registered supplier under GST
- Place Purchase order on supplier for export of goods at concessional rate
- Submit Purchase order copy to the jurisdictional tax officer of the registered supplier
- Merchant exporter shall mention suppliers tax invoice number & GST Registration number On Export invoice, Shipping bill etc.
- Merchant Exporter shall provide copy of shipping bill or bill of export containing details of Goods and Services Tax Identification Number (GSTIN) and tax invoice of the registered supplier along with proof of export general manifest or export report
What if Export is not done in90 days from date of Tax Invoice?
The merchant exporter shall not be eligible for the above mentioned exemption if the registered recipient fails to export the said goods within a period of ninety days from the date of issue of tax invoice.
Download Notification
FAQ on Application of GST for Merchant Exporter
Example for Calculation of GST Amount for Merchant Exporter ?
Mr. Ravi exporting inverter of $ 1000 to USA , RBI Rate of exchange on that day is Rs. 65 then taxable value shall be Rs. 65000/- ( $ 1000 x Rs. 65 ) GST amount is 1 % that is Rs. 6500 ( Rs. 65000 x 1 % ). This amount need to be paid for merchant exporter.
Time line to receive GST Refund for exporter ?
Exporter need to submit online acknowledgement with other supporting documents at GST department / customs. Refund of 90% value shall be transferred immediately and balance 10 % will be paid after verification of documents of document. Interest at 6 % shall be payable for delayed GST Refund.
GST Refund for Export on payment of duty for exporter of goods ?
Exporter not required to submit documents at department. Shipping bill is a documents for taking refund amount. Customs shall verify the information with GSTR3 B filed by person. After verification customs shall refund to persons bank statement.
Mr. Ravi is registered in Maharashtra and outsourcing inverter from Chennai and export post is Chennai. Does Mr. Ravi need to take registration in Chennai ?
For outsourcing inverter form Chnnai, Mr. Ravi need not to take registration in Chennai. He need to take care of below points
- In shipping bill mention state code of Maharashtra ( that is 27 )
- At item level mention state of origin at Tamilnadu.
Gst send to Job work , GST need to pay ?
No. the goods sent by an exporter to a job worker is not a supply, as there is no transfer of title and no consideration for the goods is involved. In terms of section 143 of the CGST Act, 2017 a registered taxable person (the principal) may send any inputs or capital goods, without payment of GST, to a job worker for job work.
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17 Comments
please guide..on below senario
IF A is a manufacturer, B is a Trader, and C is the Merchant Exporter,
Then C raises a Purchase order on B of 0.1% GST.
How will B deal with A?
Hi
The business between A and B is normal, merchant exporter definition will only be applicable to C.
overall; B will raise the invoice to C at the rate of 0.1%;
I am merchant exporter , we bought goods @0.1% GST . we have exported the goods and now we have to send Shipping Bill to supplier , but their is issue . In our shipping bill the supplier Gst number and tax invoice no.not mentioned .
Kindly suggest
I am merchant exporter , we bought goods @0.1% GST . we have exported the goods and now we have to send Shipping Bill to supplier , but their is issue . In our shipping bill the supplier Gst number and tax invoice no.not mentioned .
Kindly suggest
Which supplier provide GST at 0.1% GST. Kindly please mention.. I am a regularly exporter. I want to be a merchant exporter but is unable to find supplier who provide goods at 0.1% GST. Kindly help.
Please help. I need a supplier who supplies goods at 0.1% GST.
i am merchant exporter , we bought goods @0.1% GST . we have exported the goods and now we have to send Shipping Bill to supplier , but their is issue . if my suppliers comes to know my customer or rate he may contact him directly in future . how can we save our details and send my supplier
Please help. I need a supplier who supplies goods at 0.1% GST.
WHERE IN THE SHIPPING BILL ARE THE SUPPLIER’S DETAILS TO BE MENTIONED ?
THERE IS NO SPECIFIC COLUMN FOR INPUTTING THE SUPPLIER’S DETAILS AS REQUIRED BY THE NOTIFICATION FOR MERCHANT EXPORTERS
Iam a merchant exporter, manufacturers not willing to supply with out payment of applicable tax for ex 12℅ on invoice value,
What is the solution, refund, as per Gst 0.1℅ tax can be paid and export the goods
Please explain how to deal with manufacturers.
A is Supplier B is Merchant Exporter
A gives B under Lut and B Export Goods Under Lut But B forget to indicate Name And Gst detail Of A in Shipping Bill than what B need to do?
and what consequence come?
Dear Sir,
Have one inquiry ,Our One merchant EXPORTER had purchased goods for Export purpose from supplier on terms 0.125% LUT basis in July month 2022.
We ship cargo but by mistake not mention Supplier name and GST number in Shipping bill ,Now supplier hold our Amount TEN LAKH and asking mention our name In shipping bill ,Is it possible we can amend shipping bill and Add Supplier name and GST number after LEO .
is any Notification on that basis we can approach to the Customs.
Sir please can you help me with a supplier who sells goods at 0.1% GST? I am unable to find any. Please sir kindly help.
For procurement for the purpose of supply to SEZ units. Can we ask vendor to charge us at concessional rate of 0.1%?? Since for all reasons SEZ is considered to be outside India and supply to SEZ from DTA is considered as Export.
Because if vendor raises invoice at 18% though we raise invoice on SEZ customer @ 0% (LUT basis), we would face cash flow.
Not sure how effective the refund of ITC will be , when we submit application
what are the HSN code to be used for create an invoice for exporters under 1% scheme.
dear sir,
we would like to understand that as per gst law, what is the clarification and meaning of registered warehouse,
as many gst office informs that it doesnt mean the primary place of business nor additional place of warehouse..
for merchant exporters working under 0.1% they have to store good to registered warehouse meant for merchant exporters only, and they cant store in there owned warehouse which is mentioned on the additional place of gst registration.
please if you have any clarification on this matter or any circular please if you can send us or guide us on the same.
regards
ankit