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Refund process in the case of indirect export

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R.K.PATNI

R.K.PATNI (Querist)

05 December 2022 what is the process of gst refund if we do indirect export means not direct but sale in the rate 0.1% and than mercantile export the product. how to calculate refund amount and what document want to submit.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

05 December 2022 Inverted Duty Structure: In this case, there are two suppliers. The first supplier makes a supply to the second supplier at standard GST rates. But, the second supplier makes the supply to the merchant exporter at a concessional rate of 0.1%. Here, the second supplier is not directly exporting goods but providing goods to merchant exporters. Thus, as per Section 54(3), the second supplier can claim a refund of ITC under an inverted tax structure (rate of tax on inputs is higher than the rate of tax on outputs).

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