Refund under GST

[Rajesh Kumar]

Sir/Madam

A manufacturer sales goods to a merchant exporter at concessional rate @0.1%. Merchant export exports the said goods.

Now the supplier of goods is want to file refund. Under which category he will file refund I.e. either he required to file under inverted duty structure or export of goods without payment of duty ?

AI Summary

Manufacturer Can Claim Refund Under Inverted Duty Structure for 0.1% Sales to Merchant Exporters per Section 54(3)(ii) CGST Act A manufacturer sells goods to a merchant exporter at a concessional rate of 0.1%, and the merchant exports these goods. The manufacturer seeks a refund and inquires whether to file under 'inverted duty structure' or 'export of goods without payment of duty.' It is clarified that the refund can be filed under the 'Inverted Duty Structure' as per Section 54(3)(ii) of the CGST Act. This is because sales to a merchant exporter at 0.1% are partly exempt and not nil-rated. Additionally, merchant exporters can claim ITC on expenses incurred at ports subject to 18% GST.