DOCUMENTS REQUIRE

[DEEP KABRA]

DEAR SIR,

GOOD AFTERNOON,

I WOULD LIKE TO KNOW ABOUT MERCHANT EXPORT PROCEDURE. AND WHAT KIND OF DOCUMENTS SUBMIT TO DEPARTMENT

PLEASE GUIDE

[SHIVKUMAR SHARMA]

1. Self attested copy of p.o. will be forwarded by the registered recipient exporter to the Jurisdictional GST officer of the Registered supplier.

5. A copy of Shipping bill would be self attested & same to be sent by the registered recipient exporter to the Jurisdictional GST officer of the registered Supplier.

[SHIVKUMAR SHARMA]

For Merchant Export Procedure please Refer Notification Number 40/2017 Central Tax (Rate) & 41/2017 IGST (Rate) both dtd 23.10.2017

[YAGAY andSUN]

In addition to above reply you must have IEC and it must depict that you are a Merchant Exporter.

[DR.MARIAPPAN GOVINDARAJAN]

You may refer notification as indicated by Sri Sivakumar

[ANITA BHADRA]

Merchant export is popular term under EXIM policy and having equal importance with manufacturer export under GST Regime

Merchant exporter would be required to obtain registration under GST in terms of Section 24 of the CGST Act, 2017.

Procurement of goods by Merchant Exporter:

In the pre-GST era, Merchant exporters were exempted from paying Excise duties by following procedures of Form CT-1 / ARE-1 formalities and also CST was exempted against H-Form.

On implementation of GST, the facility of procurement of goods without payment of tax by the Merchant exporter for export has been dispensed with.

Consequently, Merchant exporters have faced problem of cash crunch due to buying goods on payment of GST for export and their hard cash has been held up due to the same.

This has strained of his working capital and has particularly hit small exporters. Consequently, the transaction cost of Merchant exporters has been enhanced.

This situation was brought to the knowledge of the Government. Thereby , with the recommendations of GST Council,

The Government exempts the intra-State supply of taxable goods by a registered supplier to a registered recipient for export reduced GST rate of o.1% vide Notification No. 40/2017-Central Tax ( Rate) dated 23.10.2017 subject to fulfillment of the following conditions, namely: –

(i) the registered supplier shall supply the goods to the registered recipient on a tax invoice;

(ii) the registered recipient shall export the said goods within a period of ninety days from the date of issue of a tax invoice by the registered supplier;

(iii) the registered recipient shall indicate the Goods and Services Tax Identification Number of the registered supplier and the tax invoice number issued by the registered supplier in respect of the said goods in the shipping bill or bill of export, as the case may be;

(iv) the registered recipient shall be registered with an Export Promotion Council or a Commodity Board recognized by the Department of Commerce;

(v) the registered recipient shall place an order on registered supplier for procuring goods at concessional rate and a copy of the same shall also be provided to the jurisdictional tax officer of the registered supplier;

(vi) the registered recipient shall move the said goods from place of registered supplier –

directly to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be exported; or

(b) directly to a registered warehouse from where the said goods shall be move to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be exported;

if the registered recipient intends to aggregate supplies from multiple registered suppliers and then export, the goods from each registered supplier shall move to a registered warehouse and after aggregation, the registered recipient shall move goods to the Port, Inland Container Deport, Airport or Land Customs Station from where they shall be exported;

(viii) in case of situation referred to in condition (vii), the registered recipient shall endorse receipt of goods on the tax invoice and also obtain acknowledgement of receipt of goods in the registered warehouse from the warehouse operator and the endorsed tax invoice and the acknowledgment of the warehouse operator shall be provided to the registered supplier as well as to the jurisdictional tax officer of such supplier; and

(ix) when goods have been exported, the registered recipient shall provide copy of shipping bill or bill of export containing details of Goods and Services Tax Identification Number (GSTIN) and tax invoice of the registered supplier along with proof of export general manifest or export report having been filed to the registered supplier as well as jurisdictional tax officer of such supplier.

AI Summary

Merchant export concessional GST regime requires registration, specified invoices and shipping documentation for export compliance. Merchant exporters must register under GST and meet the Notification No. 40/2017 concessional intra State supply conditions: supplier must issue a tax invoice; recipient must export within the prescribed period and be registered with an Export Promotion Council or Commodity Board; recipient must place a documented order and provide it to the supplier's jurisdictional officer; goods must move directly to export points or via a registered warehouse with endorsed invoices and warehouse acknowledgements; after export the recipient must furnish the shipping bill showing the supplier's GSTIN and invoice plus proof of export to the supplier and the supplier's tax officer.