Proof of Export required by Registered Manufacturer from Merchant Exporter

[NISHANT SHAH]

Dear All Experts,

My firm is doing Deemed Export under 0.1% IGST to Merchant Exporter by virtue of Notification No. 41/2017 DATED 23 OCT 2017 but for which no documentary evidences received from Merchant Exporter..

I want to ask below questions;

1) What documents are required to be collected from Merchant Exporter by Manufacturer for confirming whether Merchant Exporter genuinely do export or not?

2) If no documents are collected, what consequences arise in such case to Manufacturer?

3) What if Merchant Exporters are not willing to submit proof of exports to Manufacturer?

AI Summary

Manufacturer Must Provide Shipping Bill, Export Manifest, Tax Invoice for Export Benefits Under Notification 41/2017; Risk of 18% IGST Penalty A registered manufacturer inquired about the necessary documentation to confirm exports by a merchant exporter under Notification No. 41/2017. Experts advised that essential documents include the Shipping Bill, Export General Manifest, and Tax Invoice. Without these, the manufacturer cannot claim export benefits and may face penalties, including action under FEMA. Concerns were raised about departmental audits demanding proof of export, potentially leading to a demand for 18% IGST with interest. It was clarified that merchant exporters are legally required to provide these documents. Additionally, discussions covered whether registered traders can supply goods at concessional GST rates for export.