Today we will discuss the topics Goods sold to merchant exporter in GST for exports. In this blog we will tell you in details Procedure to be followed for taking the benefits in GST for Goods sold to merchant exporter in GST for exports.
What is the GST Rate for Supply of Goods to Merchant Exporters for Exports?
CBEC has notified a concessional rate of .01% for the goods sold to merchant exporters for exports subject to certain conditions.
What are conditions for Supply of Goods to Merchant Exporters for Exports at concessional rate
- Both Buyer and seller should be registered in the GST and the registered supplier shall supply the goods to the registered buyer on a tax invoice
- The registered Buyer shall export the said goods within a period of ninety days from the date of issue of a tax invoice by the registered supplier
- The registered buyer should mention the GST and invoice Number of the registered supplier in the shipping bill or bill of export.
- the registered buyers shall be registered with an Export Promotion Council or a Commodity Board recognized by the Department of Commerce
- the registered buyers should give purchase order to the registered supplier and jurisdictional tax officer of the registered supplier for procuring goods at concessional rate
- Movement of goods –the registered recipient 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;
- After exporting the goods buyers should provide following documents to the registered supplier and jurisdictional tax officer of the registered supplier
- Shipping bill or bill of export
- Tax invoice of the registered supplier
- Proof of export general manifest or export report
Documents needed from the Buyers
- Export Promotion Council certificate of buyers
- Purchase order copy from the buyers that he need to buy the goods at concessional rate.
- GST Certificate of the buyers
- Shipping bills
