Merchant Export

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

A Manufacturer got an order from EPC Contractor in the same state but End- User in other country. EPC Contractor Placed order with one line item as 'Supply and Erection' Means value not separated for both. If manufacturer making invoice with gst @ 0.1% as per merchant export rate, any tax issues will arise for future erection work?

Thanks In Advance.

AI Summary

Manufacturer Must Separate Goods and Services for GST: 0.1% Rate Only for Goods, Not Services A manufacturer received an order from an EPC contractor within the same state, with the end-user located in another country. The order includes 'Supply and Erection' as a single line item without separate values. The manufacturer inquires about invoicing with a GST rate of 0.1% for merchant export. An expert advises that 0.1% GST applies only to goods, not services like erection in a non-taxable territory. The manufacturer must separate the values for goods and services and may need assistance from a Chartered Accountant or Cost Accountant to comply with GST regulations.