Gst rule 96(10) PURCHASE AT GST 0.1% RATE (NOTIFICATION 40, 41/CGST)

Rules 421 views 2 replies

NAMRATA

STUDENT

85 Points Joined June 2012

Dear Sir

Clarification regarding GST RULE 96(10)

we are manufacturer exporter of goods and also merchant exporter

for manufacturing goods we procure raw materials at normal gst rate ,manufacture and export goods on payment of IGST, we receive refunds by filing gstr3b.

for traded goods we procure goods at GST 0.1% concessional rate (NOTIFICATION 40 & 41 OF CGST RULES). we export goods on LUT withoutpayment of IGST.

is it violation of rule 96(10) . kindly advise

Replies (2)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9157 Points Joined December 2011

Rule 96(10) of the CGST Rules, 2017, restricts the exporters who have availed the benefit of certain notifications from claiming refunds of IGST paid on exports.

Specifically, it affects those who procure inputs at concessional rates or without paying taxes.

Applicability to Your Situation As a manufacturer exporter and merchant exporter, your situation involves two different scenarios: -

*Manufactured Goods*: You procure raw materials at normal GST rates, manufacture goods, and export them on payment of IGST.

You receive refunds by filing GSTR-3B. - *Traded Goods*: You procure goods at a concessional GST rate of 0.1% under Notifications 40 and 41 of the CGST Rules and export them on Letter of Undertaking (LUT) without payment of IGST. Potential Conflict with Rule 96(10) The key issue is whether exporting goods procured at a concessional rate of 0.1% GST without payment of IGST on LUT violates Rule 96(10).

According to recent circulars and clarifications, there have been discussions on regularizing refunds of IGST availed in contravention of Rule 96(10) for exporters who imported inputs without payment of integrated taxes and compensation cess.

- *Review Notifications and Circulars*: Stay updated with the latest notifications and circulars regarding GST and exports. -

*LUT and Concessional Rates*: Verify that exporting goods on LUT without IGST payment after procuring them at concessional rates aligns with GST regulations.

By taking these steps, you can better understand the implications of Rule 96(10) on your export activities and ensure compliance with GST laws.

CA Sachin M Jain

CA | GST | Refunds | Advisory | Litigati

1463 Points Joined March 2018

There is no violations of Gst law, when you have exported Manufacturer goods under IGST and traded goods purchased 0.1% to export under LUT .

For more details -
CA Sachin M Jain .8O975. l5447

WhatsApp : https://tinyurl.com/wCASMJ
Facebook : https://tinyurl.com/FCASMJ
Instagram : https://tinyurl.com/ICASMJ
LinkedIn : https://tinyurl.com/LCASMJ
YouTube : https://tinyurl.com/YCASMJ
Twitter : https://tinyurl.com/TCASMJ
Email : casachinmjain @ gmail.com