Knowledge for IGST and refund procedure

[Guest]

Dear Sir,

I am a beginner in export. I am a merchant exporter i.e. I first get my product from a company and then export it to other customer. Now my query is that initially suppose i have purchased 100 rs product from a company situated in my state and they add 18% tax on it so the total becomes 118. Now I have already taken order from a foreign client including my profit and transportation charges at 150 rs , here suppose transportation charge is 10 rs , so now while exporting it through air by dhl express courier service they ask me about IGST i.e. whether IGST is paid or not. So following are my query for the above situation:-

1) Do i have to pay 18% IGST on 150 rs or on 140rs as the exporter will not pay it .

2) Do i get refund of total 18% tax that i have given to manufacturer and also which i pay later as IGST.

3) If i get refund what are the procedures for the same.

4) Is IGST need to be paid before exporting or at time of exporting or after exporting ?

Thanking you,

Arpit Jain

AI Summary

Merchant Exporter Seeks Clarification on IGST Payment and Refund Procedures for Exported Goods Under Section 16 A merchant exporter inquires about the Integrated Goods and Services Tax (IGST) and refund procedures related to exporting goods. The exporter purchases a product with an 18% tax and seeks clarification on whether IGST should be paid on the total export value or excluding transportation charges. Responses indicate that IGST must be paid before exporting, and a full refund is available for the IGST paid. It is also noted that if exports are made without IGST payment, a refund of input tax credit is possible. Additionally, a suggestion is made to procure goods at a reduced GST rate of 0.1% for merchant exporters.