Clearance to Merchant Exporter

[SURYAKANT MITHBAVKAR]

Under GST, The merchant exporter has to mentioned details of suppliers such as Tax invoice number,GSTN No. in their shipping bill. In routine the exporter has pass shipping bill in advance (Before procure material from supply) now

exporter insists invoice from supplier before removal of material from suppliers premises . (In short the material may be despatched from supplier after two to three days after prepare the tax invoice)

Is it allow under GST Act. and what type of precaution to be taken under this type of transaction.

[Ganeshan Kalyani]

Invoice cannot be issued before the material is supplied.

[Nash Industries I Pvt Ltd]

The supplier to raise an invoice either before removal or at the time of removal of goods to the merchant exporter on payment of GST as applicable to merchant exporter.

The merchant exporter to raise his GST invoice for export either on payment of IGST or under LUT/Bond without payment of IGST and can claim refund in either cases.

Regards

S.Ramaswamy

AI Summary

Invoice Timing: supplier must issue invoice at or before removal; merchant exporter must record supplier details and follow GST procedures. Merchant exporters must enter supplier details, including tax invoice number and GSTIN, in the shipping bill. Suppliers cannot issue invoices before supply and must raise the invoice either before removal or at the time of removal, charging GST as applicable. Exporters must raise their export GST invoice either on payment of IGST or under LUT/bond without IGST and may claim refunds; exporters should obtain and reconcile supplier invoices and retain evidence of removal to ensure compliance.