GST AND MTT

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?

Replies (1)

Hey Jayanta,

This is a nuanced issue. Let me break it down:

About hiding/darkening foreign buyer details on export documents shared with your supplier:

  • 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.


Is it permissible and ethical?

  • 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.


Bottom line:

  • 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.

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