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

Proof of export requirements: failure to produce export documents can forfeit concessional IGST and trigger tax, interest, penalties.
Proof of export-principally Shipping Bill/Bill of Export and Export Declaration plus the supplier's tax invoice-is required from the merchant exporter for supplies to qualify for the concessional IGST rate; absent such proof the supplier loses the concession and may face assessment for normal tax with interest and penalties, with potential FEMA action. Merchant exporters are legally required to provide documents; registered suppliers may charge full tax and let the exporter seek refund if export proof is later furnished. The concessional rate applies to any registered supplier where export conditions are met, and failure to export within the prescribed period obliges the supplier to remit regular tax.