TRANSACTION OF MERCHANT EXPORTERS/UTILIZATION OF MEIS SCRIPT

[NITIN DESAI]

Dear sir,

we are two star merchant exporters buying goods in india and exporting the same in convertible currency outside india. we are providing ARE and for H for excise and sales tax exemption. Now with the implementation of GST I would like to know as to whether we may procure the material without payment of GST OR we will have to pay GST and subsequently claim refund of ITC. This will result into additional cash flow till we get the refund

we have MEIS script against export benefit, with the implementation of GST whether we can clear our import material against MEIS script or we will have to pay IGST.

[MUKUND THAKKAR]

GST is chargeable in case of you are act as merchant exporter, CT-1, H form procedure will be discontinue after 01.07.2017. your understanding is correct, you have to pay first GST and go for refund. After GST MEIS script will be utilized for the payment of BCD only not for IGST.

AI Summary

GST for merchant exporters requires upfront tax payment with refund recourse; MEIS scripts usable only for basic customs duty.
Merchant exporters must pay GST at procurement and pursue refund or input tax credit mechanisms thereafter; CT-1 and H form exemptions cease. MEIS export incentive scripts cannot be used to discharge IGST and are limited to payment of Basic Customs Duty.