GST PAYMENT BY MERCHANT EXPORTERS

[PUNEET SINGH]

WE ARE MERCHANT EXPORTERS, PURCHASING FROM EXCISABLE UNITS AS WELL AS NON-EXCISABLE MANUFACTURERS. NOW , WITH GST COMING IN, IS THERE ANY SCHEME OR PAPERWORK WHICH CAN BE UNDERTAKEN BY US MERCHANT EXPORTERS , WHEREIN WE CAN AVOID PAYING THE GST TO OUR SUPPLIERS,( JUST LIKE ARE-1/ FORM H ) WHERE WE AVOID PAYING THE SAME.

THE GST AT POINT OF PURCHASE WILL ADD A HUGE AMOUNT TO OUR CAPITAL REQUIREMENT.

PLEASE ADVISE

[Rajagopalan Ranganathan]

Sir,

The procedure for export clearance with/without payment of GST is yet to be formulated and approved by GST Council. A new Foreign Trade Policy consisting with GST is yet to be announced by Ministry of Commerce. Only when these things happen an advice can be given in this matter.

[Avinash Gopalakrishnan]

Dear Sir , I understand that till then one would have to then pay GST at the applicable rate and get a refund , seems that considering a huge component of India's exports are done by merchant exporters why wasn't this thought through in the 1st place .. a rhetorical question of course but it does really put a massive strain on WC requirements , when do you think the council would pass this Exim policy

AI Summary

GST payment by merchant exporters increases working capital burden; refunds and formal export procedures are pending policy. Merchant exporters purchasing from excisable and non-excisable suppliers seek a procedure to avoid GST payment at purchase; the current position is that export-clearance procedures and a GST-consistent Foreign Trade Policy were not yet formulated, and until such procedures are prescribed merchant exporters must pay GST at purchase and pursue refunds, causing working-capital strain.