TaxTMI 
TaxTMI 
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%.
Merchant export with 18% GST
18 Dec 2017 
4 Replies 
2120 Views Asked by
Guest 
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. (AI Summary)
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. (AI Summary)