Recovery of foreign remittance from merchant exporter

[Rajesh Kumar]

Sor/ madam

When goods exported through merchant exporter, is there any requirements under any provisions that foreign remittance gain to merchant exporter is to be recovered by manufacturer of goods ? Is it mandatory for manufacturer to recover this forex ?

if yes, what will be the procedure to recover that forex? If through debit note, what will be effect on gst and at rate of gst ?

[Shilpi Jain]

As far as GST is concerned the exporter i.e. the merchant exporter is required to get the forex and not the person supplying to the exporter.

[CA Hemanth Kumar]

Agreed with the view of Shilpi Jain madam.

[Ganeshan Kalyani]

I agree with the views of the expert.

AI Summary

Merchant exporter forex receipt: manufacturer not obliged to recover foreign remittance under GST; procedural effect not addressed. The obligation to repatriate or receive export proceeds rests with the merchant exporter, not with the manufacturer or domestic supplier; a manufacturer is not required to recover foreign remittance from the merchant exporter for GST purposes. The document does not address procedural mechanisms for recovery (such as debit notes) or the GST treatment and rates applicable to any such recovery.