Tax difference for Supplier of Merchant Exporter, Goods and Services Tax - GST

[Kapil Gautam]

Hello Every Senior,
I'm Kapil Gautam, newly start a venture of manufacturing of automotive parts and fabrication of structures ( pipe, angles) in Faridabad, Haryana.

I have an order from an merchant exporter from same state but there is slight problem of tax difference between us.
Exactly, Raw Material purchased by us @18% GST and selling to merchant exporter @0.1% GST with LUT of Export. So how could i manage this difference of tax

Please help me out
> if there any mode to get refund of tax.
> domestic sale is low so couldn't manage the ratio of deduction of tax with in 1-2 years.
> someone suggest me to register a new firm only for export, GST will be refunded only for exporters or merchant exporters, not for domestic+export sale.

kapilgautam1239@gmail.com / 8587871804

Posts / Replies

[Shilpi Jain]

You would be able to get refund under inverted duty structure.

[YAGAY andSUN]

In our view, refund will be available under the provisions of Export or Deemed Export on the basis of NOC from each other i.e. Merchant Exporter/Manufacturer Exporter. Goods must be exported within 90 days from the date of supply to Merchant Export. IGM date will be the basis.