Taxing at rate of 0.05% for Intra state supply of taxable goods by a registered supplier to a registered recipient for export subject to the following conditions:
1. Mandatory Registration
Supplier and recipient should be registered.
2. Time limit to export goods
Goods should be exported within 90 days by the recipient from the date of issue of invoice by supplier.
3.Things to include in Shipping bill*/Bill of export*
Shipping bill or bill of export should indicate GSTIN of supplier and tax invoice number issued by supplier.
*Shipping Bill meaning: The shipping bill is the main document required by customs authority for clearance of goods for shipment.
*Bill of Export: Where the goods are to be cleared by land customs, bill of export is prepared instead of the shipping bill.
4. Registration of Recipient with Export promotion council
Recipient shall be registered with Export promotion Council (EPC) or a Commodity Board recognised by the Department of Commerce.
5. Order at Concessional rate and copy to jurisdictional officer of Supplier
Order should be placed at concessional rate by recipient and a copy of same should be provided to the jurisdictional tax officer of the supplier.
6. Moment of Goods
Recipient shall move the goods from suppliers place
a. Directly to the place* from where goods are to be exported.
b. Directly to a registered warehouse from where goods will move to a place* where goods will be exported.
*Place: Port, Inland Container Deport, Airport or Land Customs Station.
7. Aggregate supplies from Multiple Suppliers
In case if recipient intends aggregate supplies and then export they should follow following steps:
Step 1. Goods from each supplier shall move to Registered warehouse.
Step 2. After aggregation, goods shall move to the place* where they shall be exported.
*Place: Port, Inland Container Deport, Airport or Land Customs Station.
8. Requirements for aggregate supplies mentioned above.
a. Recipient shall endorse receipt of goods on the tax invoice AND
b. Obtain acknowledgement of receipt of goods in the registered warehouse from the warehouse operator.
Above mentioned both documents shall be provided to supplier and to the jurisdictional tax officer of such supplier.
9.When goods are Exported
Recipient shall provide copy of :
a. Shipping bill/Bill of export containing details of GSTIN and Tax invoice of the supplier.(as mentioned in point no. 3) AND
b. Proof of export general manifest or export report having been filed.
To Supplier and jurisdictional tax officer of such supplier.
If the recipient fails to export the said goods within a period of 90 days from the date of issue of invoice supplier will not be eligible for above exemption.
The author is a corporate consultant of GST and Partner at RGNL and co with more than 4 years of experience in Indirect taxation.
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