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sale to exporter by regular supplier

Neeraj Gupta ( ADVISOR) (29 Points)

03 June 2018

A regular supplier supply to exporter zero rated supply..where exporter provide him LUT. is it allow to regular supplier to supply zero rated supply on the basis of exporter,s LUT.

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6 Replies

Vinod Babu (24196 Points)
Replied 03 June 2018

with LUT No need to charge IGST Tax
without LUT needs to charge IGST tax

exports are considered zero rated supplies under sec 16 of IGST Act and you can export With payment of iGST or Under a bond or letter of undertaking.
a taxpayer who exports the goods or service will have to furnish LUT in GST RFD-11 form on the GST portal.

procedure of LUT:
1.Submit RFD-11 on GST portal online .once form is submitted ARN will be generated.
2.No document needs to be physically submitted to the jurisdictional office for acceptance of LUT.
3. A LUT shall be deemed to be accepted as soon as acknowledgement for the same bearing Application reference number (ARN) is generated online.
for details refer circular no. 40/14/2018-GST DT April 06,2028.

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Neeraj Gupta ( ADVISOR) (29 Points)
Replied 03 June 2018

But supplier is not exporter..he is supplying to exporter...in that case can we on the basis of exporter s LUT , supplier can supply him without igst or not..?

Pankaj Rawat (GST Practitioner) (55062 Points)
Replied 03 June 2018

No , you cannot, LUT is for those who is exporting

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Vinod Babu (24196 Points)
Replied 03 June 2018

Yes, pankaj sir agree with your statement

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Archit Agarwal (9 Points)
Replied 03 June 2018

according to me lut works from exporter point of view when a exporter export the goods with lut he don't need to pay tax,but in the given case regular supplier cannot waive tax on the basis of lut, HE WILL CHARGE TAX, then exporter will claim itc and claim for the refund of same.

1 Like