Dear sir,and friends
I want purchase on merchants export on 0.1%, can I export under IGST paid ie 18%
As per Notification No. 41/2017 – Integrated Tax (Rate) dated 23.10.2017. Please note the following:
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As per the above notification, a registered recipient (i.e., merchant exporter) is allowed to procure notified goods from a registered supplier at a concessional GST rate of 0.1%, subject to fulfillment of specified conditions.
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One of the key conditions prescribed under the notification is that the merchant exporter shall export the said goods under a Letter of Undertaking (LUT)/Bond without payment of IGST.
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Therefore, exports cannot be made on payment of IGST (i.e., under Rule 96 of the CGST Rules) when the goods have been procured at the concessional rate of 0.1%. Doing so would be considered non-compliance with the conditions of the concessional procurement.
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Hence, in your case, if you are procuring goods from a registered supplier under the merchant export route at the concessional rate of 0.1%, you shall be required to export the goods under LUT/Bond without payment of IGST, and may claim refund of unutilized Input Tax Credit (ITC) under Rule 89.
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