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Does 0.1% IGST on intra-State supply of taxable goods for export still exist ?

mack (Thinking-to-start-business) (154 Points)

19 December 2022

For my situation – conducting export business being a proprietor can I ask my supplier of goods to only add 0.1% of IGST so that I don’t have to pay 18%.

Somebody told me that, now this 0.1% provision is over ?

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3 Replies

kl Bhavana (Student CA Final ) (417 Points)
Replied 19 December 2022

Hi Mack,

If you are a merchant exporter and buying goods from Manufacturer then the supplier has option to charge GST at 0.1 % subject to other conditions of the such supply.

Thanks
Bhavana K L
Chartered Accountant
Bhavana @ lbkca.in

CA Raj Doshi (Practising CA) (8723 Points)
Replied 19 December 2022

It is still existing.

mack (Thinking-to-start-business) (154 Points)
Replied 19 December 2022

ok this rule only applies to traders and merchants involved with tangible products and not for a service provider for example if software engineer 'A' will make software for me and then I further send this to the client in USA then can I ask from Sofware engineer 'A' (supplier) to only add 0.1% of GST ?

And then can I also add 0.1% GST on the export selling price (if not using LUT) or I have to add 18% or the mentioned rate of IGST ?