A Merchant
Exporter means a supplier who has received supplies on which he has availed the
benefit of the Government of India, Ministry of Finance, notification No.
40/2017-Central Tax (Rate), dated the 23rd October, 2017. The Central Government exempts the
intra-State supply of taxable goods (hereafter in this notification referred to
as “the said goods”) by a registered supplier to a registered recipient for
export, from so much of the central tax leviable thereon under section 9 of the
said Act, as is in excess of the amount calculated at the rate of 0.05 per
cent., subject to fulfilment of the
following conditions, namely
Condition for claiming exemption of
concessional rates of tax
(i)
the registered supplier shall supply the goods to the registered recipient on a
tax invoice;
(ii)
the registered recipient shall export the said goods within a period of ninety
days from the date of issue of a tax invoice by the registered supplier;
(iii)
the registered recipient shall indicate the Goods and Services Tax
Identification Number of the registered supplier and the tax invoice number
issued by the registered supplier in respect of the said goods in the shipping
bill or bill of export, as the case may be;
(iv)
the registered recipient shall be registered with an Export Promotion Council
or a Commodity Board recognised by the Department of Commerce;
(v)
the registered recipient shall place an order on registered supplier for
procuring goods at concessional rate and a copy of the same shall also be
provided to the jurisdictional tax officer of the registered supplier;
(vi)
the registered recipient shall move the said goods from place of registered
supplier – (a) directly to the Port, Inland Container Deport, Airport or Land
Customs Station from where the said goods are to be exported; or (b) directly
to a registered warehouse from where the said goods shall be move to the Port,
Inland Container Deport, Airport or Land Customs Station from where the said
goods are to be exported;
(vii)
if the registered recipient intends to aggregate supplies from multiple
registered suppliers and 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 Deport, Airport or
Land Customs Station from where they shall be exported;
(viii) in case of situation referred to in
condition (vii), the registered recipient shall endorse receipt of goods on the
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 the
registered supplier as well as to the jurisdictional tax officer of such
supplier; and
(ix)
when goods have been exported, the registered recipient shall provide copy of
shipping bill or bill of export containing details of Goods and Services Tax
Identification Number (GSTIN) and tax invoice of the registered supplier along
with proof of export general manifest or export report having been filed to the
registered supplier as well as jurisdictional tax officer of such supplier.
The
registered supplier shall not be eligible for the above mentioned exemption if
the registered recipient fails to export the said goods within a period of
ninety days from the date of issue of tax invoice
Refund in case of Merchant Exporter
Rule
89(4B) of the GST Rules provides that where the person claiming refund of
unutilized ITC on account of zero-rated supplies without payment of tax has
received supplies on which the supplier has availed the benefit of the said
notifications, the refund of ITC, availed in respect of such inputs received under
the said notifications for export of goods, shall be granted.
This
refund of accumulated ITC under rule 89(4B) shall be applied under the category
“any other” instead of under the category “refund of unutilized ITC on account
of exports without payment of tax” in FORM GST RFD-01 and shall be accompanied
by all supporting documents required for substantiating the refund claim under
the category “refund of unutilized ITC on account of exports without payment of
tax”.
After
the scrutinizing the application for eligibility, if the proper officer
satisfied that the whole or any part of the amount claimed is payable as
refund, he shall request the taxpayer, in writing, to debit the said amount
from his electronic credit ledger through Form GST DRC-03. Once the proof of
such debit is received by the proper officer, he shall proceed to issue the
refund order in FORM GST RFD-06 and the payment order in FORM GST RFD-05.
Disclaimer:
All the Information is based on the notification, circular and order issued by
the Govt. authority and judgement
delivered by the court or the authority information is strictly for educational
purposes and on the basis of our best
understanding of laws & not binding on anyone.