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

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.