We, being Merchant Exporter, are using both the options(a) export under LUT & claiming unutilised ITC, as refund (b) export by paying off IGST & then claim refund [ if not buying goods @ 0.1% GST].
As we are bound to share final export related shipping bill etc with initial seller to us within 90 days, could we erase / hide name of foreign buyer? Industry practice is to darken ultimate buyer's details. Is it permissible and ethical practice?
Hey Jayanta,
This is a nuanced issue. Let me break it down:
Legally, shipping bills and export documentation are government records, and accurate information is required for customs and GST compliance.
When you share copies of these documents with your domestic supplier (to claim ITC refund or prove export), the key purpose is to establish export realization and linkage.
Hiding or darkening the buyer's name on documents shared with your supplier is not explicitly prohibited under GST or Customs laws, but:
It should not lead to misrepresentation or concealment of material facts.
If the buyer’s details are relevant for audit or verification, withholding them could be questioned.
Industry practice: Some exporters do obscure the buyer’s name to protect commercial confidentiality, especially in competitive markets.
Permissible: Generally yes, if the intent is purely commercial confidentiality and not to mislead authorities.
Ethical: It depends — transparency with tax authorities is important, but protecting business confidentiality with your suppliers is a valid business practice.
Best practice:
Keep the original documents with full details intact for your own records.
Share redacted copies with suppliers if you want to protect buyer info.
Be prepared to produce unredacted documents if tax or customs authorities ask during audits or assessments.
You can darken buyer’s details in the copies shared with your supplier to maintain confidentiality.
But you must keep the original unaltered documents for official records and be ready to present them if required.
Avoid any act that may amount to misrepresentation to authorities.
CAclubindia
