Seeking Expert Advice for GST Concession on Export Transactions

This query is : Resolved

Krunal Parekh (Querist)
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31 May 2024 I am looking for expert advice on handling a specific GST concession scenario involving three parties:
1. Manufacturer (my supplier)
2. Trading Company (my company)
3. Merchant Exporter (my customer) who will export goods to his overseas end customer.

My concern is supplying goods to the merchant exporter at a concessional GST rate of 0.1% for exports. My profit margin doesn't support purchasing goods at 18% GST and selling at 0.1%, then waiting for a refund.

Is it possible to purchase goods from the manufacturer at 0.1% GST and then sell to the merchant exporter at 0.1% GST? If so, what steps and documentation are required to execute this correctly and ensure safe trade?

I am seeking genuine advice to promote my products and services in the global market.

Thank you!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 May 2024 Ask your manufacturer to raise direct invoice with 0.1% GST to merchant exporter at your selling price and ask the manufacturer to pay the excess billing to you as commission.

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