Merchant exporters

287 views
User Avatar

Student CA IPC / IPCC
60 Points Posted on 30 September 2020
Merchant exporters want to claim the benifit of concessional tax @ 0.1% as per the Notification No. 40/2017 - Central Tax( Rate)

in this case Merchant exporters supplying goods to the SEZ UNIT( a zero rated supply)

the above mentioned notification said we can claim benifit when we export the goods

so in this case Merchant exporters are eligible or not ??
0 Reply Share Follow
On 30 September 2020 at 14:46 Report
Replies (3)
Quick Summary
This discussion clarifies whether merchant exporters supplying goods to Special Economic Zones (SEZs) can claim the concessional tax rate of 0.1% under Notification No. 40/2017. The key distinction lies in the definition of 'export' within the notification. As supplies to SEZs are considered 'zero-rated supplies' rather than direct 'exports', merchant exporters are generally not eligible for the 0.1% rate or the refund of unutilised Input Tax Credit (ITC) under Rule 96(10) of CGST in this specific scenario.

User Avatar

GST Practitioner
55067 Points Posted on 30 September 2020
In term of Rule 96(10) of CGST , the merchant exporter can claim refund for Unutilised ITC only when export is done without payment of Tax (with Lut or bond) .


Note :And also the Condition prescribed in Notification 41/2017 IGST (R) need be satisfied.
Reply
On 30 September 2020 at 16:37
User Avatar

Student CA IPC / IPCC
60 Points Posted on 30 September 2020
Sir,
Thanks for the information but I want to know whether in the said notification export means physical export or supply through FTZ are also covered ??
Reply
On 30 September 2020 at 16:46
User Avatar

GST Practitioner
55067 Points Posted on 30 September 2020
Yes in notification it' is mentioned "Export" not "ZERO-RATED supply".
Hence in case supply to SEZ , refund of Unutilised ITC is not available.
Reply
On 30 September 2020 at 23:24

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. Last Date To Fill ITR For Non-Audit Case
  2. Guidance Required on Filing Fresh Registration und
  3. IT Return Refund Status AY 2026-27
  4. Clarification Regarding Income Tax Demand Notice
  5. Online PAN Download: Check How?
  6. Demand of Late fee/Interest under section 75 of GS
  7. DSC registration on TRACES portal
  8. Can we get registered for MCA if we get a Virtual
  9. DONATION PAYMENT REG
  10. GST IDS Refund – Statement 01A: Invoice Not

More recent discussions | Post

Related Topics :

Loading