Manufacturing export and merchant export

[Asked by Guest]

Pls guide whether a manufacturing exporter can do MERCHANT EXPORT with same GSTIN.

[Alkesh Jani]

Sir,

The GST regime is supply based, export is considered as zero-rated supply. As a manufacturing exporter, a person receives input(s) in order to make finished goods. For example, ingredients a, b and c are received and final product X is made out of it and same is exported. On other than a person receives product X and exports it. Every person can export the goods and/or services. In GST even unregistered person can export goods and/or services.

In my point of view, Yes you can export the goods with same GSTIN, as there is no concept of merchant exporter in GST. However, benefit of Notification No.40/2017-CT-(Rate) dated 23.10.2017, is not available to manufacture the final product to be exported.

Our experts may correct me if mistaken.

Thanks

[Rajagopalan Ranganathan]

Sir,

I agree with the views of Shri. Akilesh.

[YAGAY and SUN]

In this scenario, on your IEC both the categories must be mentioned e.g. Manufacture Exporter & Merchant Exporter.

Thanks everybody.

Just clearing what I understood....

1. When we manufacture a product, we need to pay normal GST for purchasing the materials and services required for this.
2. When we purchase a different product for exporting, we can buy with Benefit of 0.1% GST. Due respect to all the conditions.
3. We need to specify these categories to authorities.
4. All this can be done with the same GSTIN.

Is it correct?

[KASTURI SETHI]

In my view you are correct. Needless to say you will have to follow the guidance given by all experts. The concept of Merchant export has not abolished.

[Alkesh Jani]

Sir, Please refer Trade Notice No.09 dated 12.06.2017, issued by DGFT, which may help you.

Thanks

AI Summary

Zero-rated export supply: manufacturing exporters can also carry out merchant exports under the same GSTIN, with IEC compliance.
Exports are treated as zero-rated supplies under GST, and a manufacturing exporter may also undertake merchant exports using the same GSTIN; export categories should be recorded on the IEC and relevant procedural guidance observed. The rate benefit in Notification No.40/2017-CT-(Rate) is not available for goods manufactured for export, while purchases of finished goods for export may attract the specific lower tax treatment subject to conditions.