Sale of MESE certificate

[RAHUL GAIKWAD]

Sir,

I Have sold the certificate Issued by DGFT against export. The certificate is under Merchant Export Incentive scheme.

I want to sell the said certificate, please let me know whether said is taxable under GST ?? if Applicable , under Goods of Srvice, and rate of Tax ??

[SURYAKANT MITHBAVKAR]

Selling of MEIS License is exempted under Notification No.35/2017 CE (Rate) Dated 13.10.2017.

[RAHUL GAIKWAD]

Thanks

[Spudarjunan S]

Dear Rahul Ghaikwad,

The sale of MEIS certificate would be treated as exempted supply w.e.f 13th October 2017 by virtue of sl.no.122A of notification no.02/2017 C.T(R) dated 28th June 2017, as amended by notification no.35/2017 C.T(R) dated 13th October 2017.

However, with the benefit of exemption you should be vigilant that Rule 42 would be applicable if you provide both taxable and exempted supplies and you need to reverse the common credits in proportion to taxable and exemted supplies. Kindly refer rule 42 of CGST rules 2017.

[KASTURI SETHI]

Dear Sh. Spudarjunan S Ji,

Thanks for such accurate reply. Really your reply has enriched my knowledge.

AI Summary

Sale of MEIS Licenses Exempt from GST per Notification 35/2017, but Rule 42 Requires Credit Reversal for Mixed Supplies. A participant in a discussion forum inquired about the Goods and Services Tax (GST) implications of selling a certificate issued under the Merchant Export Incentive Scheme (MEIS). One respondent clarified that the sale of MEIS licenses is exempt from GST under Notification No. 35/2017 CE (Rate), effective from October 13, 2017. Another respondent added that while the sale is exempt, Rule 42 of the CGST Rules 2017 requires reversing common credits if both taxable and exempt supplies are provided. A final comment expressed appreciation for the detailed explanation.