CONCESSIONAL RATE OF GST TO MERCHANT EXPORTER

[SURYAKANT MITHBAVKAR]

Merchant Exporter can export goods while charging concessional rate of 0.01% GST as per decision of GST Council in its 22nd Meeting held on 6th October,2017.

In view of the above merchant exporter can procure goods for export with full rate of GST or any concessional rate?

Secondly the above concession is only for merchant exporter and manufacture exporter also.

[Rajagopalan Ranganathan]

Sir,

Necessary Notification under IGST Act is yet to be issued. The rate mentioned by you will come into effect from the date of issue of relevant Notification. Till then you have to pay IGST at applicable rate.

[Kishan Barai]

No , 0.01% GST would not be charged, that has been clarified by FIEO.

Merchant Exporter can procure goods without payment of GST against LUT, your Co. needs LUT approval by GST Jurisdiction near your area which has been provided to every exporter.

Enjoy Zero GST on Exports. 

[manoj kumar]

Dear Sir,

Kindly clarify the concessional rate of 0.1 % & 0.05 % .

Where is applicable & when its use .

Kindly suggest us & send your valuable reply.

Regards,

Manoj

AI Summary

Concessional GST rate for merchant exporters remains uncertain pending notification; exporters may rely on LUT to avoid tax.
Concessional GST for merchant exporters was announced by the GST Council but awaits an IGST Act notification; until that notification is issued exporters must apply the applicable IGST rate. Trade guidance has advised merchant exporters can procure for export without payment of GST by furnishing a Letter of Undertaking (LUT) and thus treat exports as zero-rated in practice, creating interim compliance options amid unresolved clarification on specific concessional slabs.