GST Update - GST leviable at 0.10% on purchase of Goods for Export
CA Vikram Khaitan/ARV Group
Dear All,
Please note that CBEC vide Notification No. 40/2017 – Central Tax(Rate) dated 23-10-2017 and Notification No. 41/2017 – Integrated Tax (Rate) dated 23-10-2017 has exempted supply of taxable goods by a registered supplier to a registered recipient for export in excess of 0.1% i.e. any intra-state purchase of goods for Export would be chargeable at CGST - 0.05% and SGST – 0.05% and any inter purchase of goods for Export would be chargeable at IGST – 0.10%.
The aforesaid exemption is subject to following complicated conditions -
(i) The goods should be supplied by the registered supplier to the registered recipient on a tax invoice;
(ii) The goods should be exported within a period of ninety days from the date of issue of a tax invoice by the registered supplier;
(iii) The GST number of the registered supplier and the tax invoice number issued by the registered supplier of the said goods should be mentioned in the shipping bill or bill of export;
(iv) The registered recipient should be registered with an Export Promotion Council or a Commodity Board recognised by the Department of Commerce;
(v) An order should be placed on registered supplier for procuring goods at concessional rate and a copy of the same should also be provided by the registered recipient to the jurisdictional tax officer of the registered supplier;
(vi) The said goods should be moved from place of registered supplier directly to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be exported or directly to a registered warehouse from where the said goods shall be moved to the Port; and
(ix) After the goods are exported, a 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 or export report should be provided to the registered supplier as well as jurisdictional tax officer of such supplier.
In case you require any further clarification, feel free to get in touch with us.
Thanks & Regards,
CA Vikram Khaitan
Partner – GST Division
ARVG & Associates, Chartered Accountants
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D: +91-33-4064 4076; M: +91-98315 86568
Email: vik...@arvsolutions.co.in / vik...@gstassist.co.in
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