Supply to merchant exporter

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.