Purchase from URD for Exports

[Kishan Barai]

As we all know that Exports are Zero Rated, government has provided the option that either exporters are eligible for ITC or DBK (any one of them) so if purchased from URD is made by merchant exporter to export in international market, how accounting has to be adjusted? What if purchase is above 5000 INR formula. Why merchant exporter pay under RCM as they are exempted & how he can procure against LUT from URD ??

Please enlighten in details.

Thank You

[DR.MARIAPPAN GOVINDARAJAN]

As per the notification dated 13.10.2017 the transactions from the unregistered dealers are exempted from GST up to 31.03.2018.

AI Summary

Zero-rated exports: supplies from unregistered dealers exempt from GST temporarily, affecting RCM and LUT procurement.
Merchant exporters may rely on the indicated notification: transactions with unregistered dealers are exempt from GST up to 31.03.2018, relevant to questions on claiming input tax credit or export drawback, reverse charge applicability and procurement against a Letter of Undertaking.