Dear All,
If i want to buy material for exports from a unit which is registered with central excise but exempted from central excise under SSI registration for a small period of the financial year till it reaches the stipulated exemption turnover limit of ₹ 1.5 Cr, Do i have to give a ARE-1 & CT-1? As there is no excise benefit which the seller can pass on, I doubt that there is a need to provide them with a CT-1. Further for the benefit of the unit we provide Form H to them so they can get a deduction of our invoice amounts from their total turnover to enjoy the exemption for a prolonged period. Isn't a Form H enough to get that deduction?
Clarification on ARE-1 and CT-1 Forms for SSI Units Below Turnover Limit; Form H May Be Sufficient for Exemption. A participant inquired about the necessity of providing ARE-1 and CT-1 forms when purchasing materials for export from a unit exempted from central excise under SSI registration. The concern was whether these forms were needed since the seller could not pass on excise benefits. It was suggested that providing Form H might suffice for the seller to deduct invoice amounts from their turnover to extend the exemption period. Responses clarified that SSI units below the turnover limit do not need to follow ARE-1 and bond procedures, referencing a relevant circular for further guidance. (AI Summary)
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