Supply to merchant exporter

We are supplying to merchant exporter in ahmedabad by charging CGST and SGST @ .05%. 

CAn we claim refund of ITC for such sales made to exporter?

 

Thank you.

Replies (6)
Quick Summary
This discussion explores whether businesses supplying goods to merchant exporters in Ahmedabad, charging CGST and SGST at 0.05%, are eligible to claim a refund of Input Tax Credit (ITC). The consensus suggests that claims are possible under the inverted duty structure, particularly for goods purchased at a higher tax rate (e.g., 18%) and sold at a lower rate (e.g., 0.1%). However, it's noted that certain product categories like coal, vegetable oil, and fabric may not be eligible for such refunds.

Yes u can claim under inverted duty structure
see section 54
Dear V Subramanian sir, can you please confirm if you have done it practically and succeeded. As it will help my clients.
Product name please

Any product which is purchased at 18% but sold at 0.1%

Some products u can't claim.
coal, vegetable oil, fabric etc

Ok thank you sir. I understand that practically  refund under inverted duty structure is possible for most of the goods.

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