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MERCHANT EXPORT UNDER GST

Goods and Services Tax - Started By: - SURYAKANT MITHBAVKAR - Dated:- 18-7-2017 Last Replied Date:- 24-8-2017 - We have manufacturing Pharma machinery registered under GST Act. We have doing export for our Manufacturing machinery under LUT also We are doing trading Export (Material procured under CT-1). Now, under GST regime, there is no (B1 Bond) hence we can not issue CT- 1 for our trading purchases for export. What is procedure to adopt related to Trading Export under GST . - Reply By Kishan .....

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s, Merchant Exporter can execute a Bond and obtain CT-1 certificate to procure goods from local manufacturers for the purpose of export. However, under the provisions of GST / IGST, the concept of merchant exporter is not there. Assume Merchant Exporter X place order with Y a manufacturer to procure goods for onward export to foreign customer Z and both X and Y are situated in the same state. Here both X and Y have to obtain GST Registration. Under GST, the manufacturer X has to raise local GST .....

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Bill of Lading, X has to give his GSTN Register Number and the Invoice reference in the said documents. If he is eligible for execution of Letter of Undertaking, he can also do so accordingly . After completion of Export, the particulars of export will be automatically transferred from Customs Department to Y account maintained in GSTN portal. The duty paid amount will also be refunded by way of direct credit to Y Bank account. If Y cleared the export goods under Bond without payment of duty, h .....

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ingly S. GOKARNESAN Advocate, Chennai 98400 87349 In my previous post, I made mistake of mentioning X and Y wrongly. You may read with the following corrections Under the existing Central Excise provisions, Merchant Exporter can execute a Bond and obtain CT-1 certificate to procure goods from local manufacturers for the purpose of export. However, under the provisions of GST / IGST, the concept of merchant exporter is not there. Assume Merchant Exporter Y place order with X a manufacturer to pro .....

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here the tax can be paid either out of credit earned for the purchase made from the manufacturer or pay by cash) and supply the goods for export through the port. While submitting Shipping Bill and Bill of Lading, Y has to give his GSTN Register Number and the Invoice reference in the said documents. If he is eligible for execution of Letter of Undertaking, he can also do so accordingly . After completion of Export, the particulars of export will be automatically transferred from Customs Depart .....

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y but I would like to do bit correction Under GST, the manufacturer X has to raise local GST Invoice with IGST and supply the goods to Y . X has to mention that supply meant for Export Purpose with GST number of X & Y in his bill Y can take credit the IGST as per X InvoiceInvoice of export raised with CGST & SGST will not be allowed for refund, all exports would be treated as interstate supply as per GST Law Thank You. - Reply By HimansuSekhar Sha - The Reply = Dear kishanji,How can x cl .....

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(X). Please suggest. - Reply By RAMJI RAMJI - The Reply = Thanks for the clarity provided on GST refunds on Exports.We are a merchant exporter & the Pre-GST documentation helped us in procuring products from 100% EOU without payment of Excise & Customs Duty via CT1/ARE1 process. GST refund process is well understood. But there is no info on the refund of the Basic Customs Duty + Cesses (and is not under the GST Act) that will be charged by the 100% EOU . Does the BCD+Cess have to be char .....

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to query on Merchant exporter) above where in I have stated that a) the existing concept of getting goods from manufacturer by Merchant exporter under CT-1 is no longer available in GST. b) In GST the first transaction from Manufacturer to Merchant exporter is a supply which attracts GST, c) In GST the transaction from Merchant Exporter to foreign buyer is another supply which attracts zero rate. He can take credit the GST paid by the manufacturer and claim refund after export. He is the actual .....

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