Exporters: Now buy goods at 0.1% GST

Introduction

The export sector had taken a hit since the GST was introduced, the incentive schemes were suspended, and refund mechanism was not there. In all, it wasn’t an ideal situation for exports.

Hence, in order to provide relief to the export industry, the government has decided to exempt the GST on all items purchased by exporters for export over and above o.1% GST. This step of the government has been welcomed by all the traders, exporters across the nation and this step will ultimately solve the problem of liquidity crunch with the exporters.

Now, after buying the goods at 0.1% IGST, exporters fund blockage with the government came to an end. After the notification of the government, the following situation shall emerge:

• Interstate purchase: If you are an exporter and you are purchasing goods from another state for exports, then the same shall be taxed @ 0.1% IGST.
   

• Intrastate purchase: If you are an exporter and you are purchasing goods from within the state, then the same shall be taxed @ 0.05% CGST and 0.05% SGST.

Conditions to be fulfilled for goods at 0.1% GST

The following conditions are to be fulfilled to get the goods at the concessional rates are as follows:

1. GST Registration: The registered supplier must supply the goods to the registered recipient on a tax invoice.

2. Time Limit for exports: The registered recipient exporter shall export the goods within a period of ninety days from the date of issue of a tax invoice by the registered supplier.

3. Mention GST Number in shipping bill: The registered recipient, i.e. exporter of goods shall indicate the GST Identification Number of the registered supplier and the tax invoice number issued by the registered supplier in respect of the said goods in the shipping bill or bill of export.

4. RCMC Registration Mandatory: The exporter must be registered with an export promotional council or a commodity board recognized by the Department of Commerce.

5. Intimate the GST officer: The registered recipient (exporter) shall place an order on registered supplier for procuring goods at concessional rate and a copy of the same shall also be provided to the jurisdictional GST tax officer of the registered supplier.

6. Move goods directly to port: The exporter shall move the said goods from the place of registered supplier directly to the port, Inland container depot (ICD) or airport from where the said goods are to be exported or) directly to a registered warehouse from where the said goods shall be move to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be exported.

7. Where goods received from different suppliers: If the registered recipient intends to aggregate supplies from multiple registered suppliers and then export, the goods from each registered supplier shall move to a registered warehouse and after aggregation, the registered recipient shall move goods to the Port, Inland Container Deport, Airport or Land Customs Station from where they shall be exported.

Further, the exporter shall endorse receipt of goods on the tax invoice and also obtain acknowledgement of receipt of goods in the registered warehouse from the warehouse operator and the endorsed tax invoice and the acknowledgment of the warehouse operator shall be provided to the registered supplier as well as to the jurisdictional tax officer of such supplier.

8. File all documents to the GST officer & Supplier: When goods have been exported, the exporter shall provide copy of shipping bill or bill of export containing details of GSTIN and tax invoice of the registered supplier along with proof of export general manifest having been filed to the registered supplier as well as jurisdictional tax officer of such supplier.

Conclusion

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