Guidelines for supplying goods to merchant operator under GST.

Meaning of Merchant Operator

·         Merchant Export means an activity by a trader who exports or intends to export goods. The person engaged in trading activity and export or intend to export goods is a Merchant Exporter. A merchant exporter is mainly engaged in the export of goods and not services.


The procedure for supplying goods to a merchant exporter shall be as follows:


Order by Merchant Operator

·         Merchant exporter shall place an order on registered supplier for procuring goods at concessional rate (IGST @0.1 or CGST 0.5+SGST 0.5)

·         Copy of the order shall also be provided to the jurisdictional tax officer of the registered supplier

 

Supply of goods by supplier

For exporting the goods, the recipient shall

·     directly move the said goods from supplier’s place to the port/inland container depot (ICD)/airport/land custom station (LCD) from where the said goods are to be exported; or

directly move the said goods to a registered warehouse from where the said goods shall be move to the port/inland container depot (ICD)/airport/land custom station (LCD) from where the goods are to be exported. Goods must be exported within a period of 90 days from the date of issue of tax invoice by the supplier. The exemption would not be available to the supplier if the merchant exporter fails to export the said goods within a period of 90 days from the date of issue of tax invoice

 

 

Post-export compliance 

Once the goods are exported, merchant exporter shall provide following documents to the supplier and the jurisdictional tax officer of the supplier:

·         Copy of shipping bill/ Bill of export (incorporating supplier’s GSTIN)

·         Tax invoice provided by supplier

·         Export General Manifest/ Export report

 

Other Conditions to be satisfied

Following are the conditions to be satisfied for availing benefit of concessional rate of GST on supply to a merchant exporter:

·         Supplier shall supply goods under a tax invoice with concession rate.

 

·         Merchant exporter can export the goods under LUT/Bond only and cannot export under IGST payment route.

 

·         Merchant exporter shall indicate the GSTIN of the supplier and tax invoice number issued by the supplier in the shipping bill/ bill of export

 

 

  

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