0.1% gst on exports

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Kalpesh

Kalpesh (Querist)

28 April 2018 0.1 % rate of gst on exports is what ki d of gst? Is it igst or cgst & sgst? Please elaborate.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 April 2018 CGST and SGST applicable.
On implementation of GST, the facility of procurement of goods without payment of tax by the Merchant exporter for export has been dispensed with. Consequently, Merchant exporters have faced problem of cash crunch due to buying goods on payment of GST for export and their hard cash has been held up due to the same. This has strained of his working capital and has particularly hit small exporters. Consequently, the transaction cost of Merchant exporters has been enhanced. This situation was brought to the knowledge of the Government. Thereby , with the recommendations of GST Council, the Government exempts the intra-State supply of taxable goods by a registered supplier to a registered recipient for export reduced GST rate of o.1% vide Notification No. 40/2017-Central Tax ( Rate) dated 23.10.2017

Kalpesh

Kalpesh (Querist)

28 April 2018 So does that mean 0.05% CGST and 0.05% SGST ? And what about inter state supply to exporter?

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