MERCHANT EXPORT UNDER GST

[SURYAKANT MITHBAVKAR]

We have manufacturing Pharma machinery registered under GST Act. We have doing export for our Manufacturing machinery under LUT also We are doing trading Export (Material procured under CT-1).

Now, under GST regime, there is no (B1 Bond) hence we can not issue CT-`1 for our trading purchases for export.

What is procedure to adopt related to Trading Export under GST .

AI Summary

Zero-rated exports: merchant exporters must treat domestic purchases as taxable supplies and use Bond/LUT or pay IGST and claim refund.
Merchant exporters are treated as exporters under GST: the manufacturer-to-merchant transfer is a taxable supply requiring GST registration, and the merchant may export under a Bond/LUT with zero-rated status or pay IGST and claim refund. Export documentation must quote the exporter's GSTIN and invoice; customs may still demand bank guarantees. Export particulars are transferred from customs to the GSTN for refund of paid tax or credit of input tax, and procedural compliance governs entitlement to refunds of input tax credit or IGST.