GST @0.1% for third party export

[Guest]

If a registered recipient(third party exporter) is not registered with Export Promotion Council/ or freshly applied for, is he entitled for invoicing @0.1% from his supplier? (Ref.: notification no. 40/2017 -Central Tax (Rate)) ?

[Ganeshan Kalyani]

The Notification states that reduced rate is applicable only when all the conditions mentioned in the notification is satisfied. So in my view, you will have to charge GST at regular rate.

[Guest]

Thanks Mr. Kalyani for your response.

[Guest]

WHAT IF MERCHANT EXPORTER FAILS TO EXPORT GOODS WITHIN 90 DAYS IS INTEREST AND PENALTY APPLICABLE

AI Summary

Reduced GST rate eligibility denied where exporter lacks required registration; regular GST applies and export delays may trigger penalties. The concessional GST rate for third party exports is available only when all conditions in the relevant notification are satisfied; if the recipient lacks required registration or other eligibility, the supplier must charge the regular GST rate. A related compliance issue arises where a merchant exporter fails to complete export within the prescribed period, potentially exposing the parties to interest and penalties under applicable tax recovery and sanction provisions.