Merchant export with 18% GST

[Asked by Guest]

I have an aggregated order of Pharma APIs and am a Merchant exporter. Is it compulsory for me to buy the goods from Manufacturers with .1% GST as I have to submit all my trade value data to supplier through Shipping bill. Can i buy with 18% GST and claim input credit in GST return ? I will execute the LUT for the export. Two supplier/manufacturer have asked to revise my PO to .1% and other 2 have taken at 18%.

[Ganeshan Kalyani]

It is optional.

[SHIVKUMAR SHARMA]

If you do not want to share any Trade information with Supplier of Goods.You can Purchase The goods Paying GST in full rate & take ITC & you can Export the same agst.LUT. It is your Choice.

[ashutosh shukla]

Dear Querist

it is not necessary to purchase form registered manufacturer. the only condition is that is should be purchased from registered supplier.

I normally recommend to pay full and take refund of the same.

please see Notification No. 40/2017-Central Tax (Rate)

Regards

Ashutosh Shukla

[Kishan Barai]

It's optional if you would like to go via 0.1% sourcing against LUT. You can also opt for payment of GST & apply for a refund. Make sure shipping bill must contain its information. Thank You

AI Summary

Input tax credit allowed where merchant exporter pays full GST and exports against LUT; sourcing at concessional rate remains optional.
Merchant exporters may either procure at the concessional 0.1% GST rate by recording supplier details on the shipping bill, or purchase at the full rate, claim input tax credit in returns and export under an LUT; procurement from a registered supplier is required and exporters must ensure shipping bill disclosure to support the chosen tax treatment and any refund claims.