GST on benefits from merchant exporter

[Rajesh Kumar]

Sir/ madam

The under mentioned is an old query which now not accepting new comments, that's why I am posting again.

XYZ(Manufacturer) is supplying goods for export through PQR (Merchant Exporter). 1) In case of FOREX gain to PQR, XYZ will issue debit note to PQR to recover the same. 2) DBK amount received by PQR, will be transferred to XYZ 3) MEIS scrip will be transferred in the name of XYZ by PQR without any monetary benefit. Is XYZ liable to pay GST on all these transactions?

sir I could understand why XYX will issue debit note to recover Forex ? Why drawback will be transferred to XYZ ?

Please explain in details with provisions . As both Forex and drawback are pertains to exporter. Which provisions say these are to be transferred by merchant exporter to manufacture? Please elaborate. Regards

AI Summary

GST Not Applicable to FOREX Gains or DBK Transfers; MEIS Scrip Transfer Exempt from GST A manufacturer, XYZ, supplies goods for export through a merchant exporter, PQR, and queries whether GST applies to certain transactions. XYZ plans to issue a debit note to PQR to recover FOREX gains, transfer the DBK amount received by PQR, and have the MEIS scrip transferred without monetary benefit. Respondents clarify that no GST applies to FOREX gains or DBK transfers as they are not considered supplies. However, the MEIS scrip transfer constitutes a supply, but is exempt from GST. Additional considerations, such as market value and interest on debit notes, are also discussed.