Manufacturer Exporter refers to a person manufacturing goods and exports or intends to export such goods whereas; Merchant Exporter refers to a person engaging in the trading activity and exporting or intending to export goods. He can export the goods either directly from the premises of the manufacturer or; through his premises under his firm name.
O.1% GST Rate for Supplies made to Merchant Exporters
On recommendation of the GST Council, the central government has notified 0.1% GST rate on inter-state supply of taxable goods; by a registered supplier to a registered recipient/merchant exporter for exports, subject to the fulfillment of following conditions:
the registered supplier shall supply the goods to a registered recipient on a tax invoice.
the registered recipient shall export the goods within 90 days from the date of issue of a tax invoice by a registered supplier.
a registered recipient shall indicate the GSTIN of a registered supplier and the tax invoice number issued by a registered supplier in respect of the goods in the shipping bill or bill of export, as the case may be.
the registered recipient shall be registered with the Export Promotion Council or a Commodity Board; recognized by the Department of Commerce.
the registered recipient shall place an order on the registered supplier for procuring goods at concessional rate, and; a copy of the same shall also be submitted to the jurisdictional tax officer of the registered supplier.
the registered recipient shall move the goods from the place of registered supplier; either directly to the Port, Inland Container Depot, Airport/Land Customs Station from where the said goods are to be exported; or directly to the registered warehouse from where the said goods shall be moved to the Port, Inland Container Depot, Airport or Land Customs Station from where the said goods are to be exported.
if the registered recipient intends to aggregate supplies from multiple registered suppliers & 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 Depot, Airport/Land Customs Station from where they shall be exported.
in case of situation in condition 7 above, the registered recipient shall endorse receipt of goods on a 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 a registered supplier; as well as to the jurisdictional tax officer of such supplier.
when goods have been exported; the registered recipient shall provide copy of shipping bill or bill of export containing details of GSTIN and; tax invoice of a registered supplier along with the proof of export general manifest or export report; having been filed to a registered supplier as well as jurisdictional tax officer of such supplier.
Note: The registered supplier shall not be eligible for the above mentioned exemption if; the registered recipient fails to export the said goods within 90 days from the date of issue of tax invoice.