A PARTY PURCHASE THE MATERIALS GST @ 18% AND THEY HAVE SELL THE SAME MATERIAL TO A EXPORTER PARTY GST @ 0.10%. IN THAT CASE CAN THEY AVAIL/ADJUST THE FULL ITC WITH THEIR OTHER SALES OR NOT. PLEASE CLARIFY WITH SECTION NUMBER.

Reply- Full ITC will be available under section 16 of CGST Act, 2017 which can be adjusted against any sale. Also,  as per Circular No.125/44/2019-GST Dated 18th November, 2019 The supplier who supplies goods at the concessional rate is also eligible for refund on account of inverted tax structure as per the provisions of clause (ii) of the first proviso to sub-section (3) of section 54 of the CGST Act. It may also be noted that the exporter of such goods can export the goods only under LUT / bond and cannot export on payment of Integrated tax.

As you are supplying goods to a Merchant exporter and charging 0.1% GST which is lesser than tax paid on inputs, you can claim refund in the category of 'inverted duty struture'.