I AM SELLING GNSEEDS TO CHENNAI EXPOTER BY COLLECTING 0.01% IGST WHO EXPORT THE SAME TO OTHER COUNTRIES . KINDLY LET ME KNOW WHETHER I HAVE TO SUBMIT LUT, AND OTHER DOCUMENTS TO BE RECEIVED FROM THE EXPORTER I F THE EXPORTER HAVE NOT SOLD TO OTHER COUNTRY WHAT IS MY POSITION HOW CAN I KNOW WHETHER HE ACTUALLY EXPORTED THE SAME TO OTHER COUNTRY

Reply- As per Rule 96(10) of CGST Rules, The persons claiming refund of integrated tax paid on exports of goods or services should not have received supplies on which the supplier has availed the benefit of notification No. 40/2017-Central Tax (Rate) or 41/2017 Integrated tax (Rate) 23rd October, 2017. Hence, merchant exporter are required to export goods only under LUT, they cannot claim refund on IGST paid on export.

A person supplying goods to such merchant exporter is not required to submit LUT. It is mandatory for merchant exporter.

Notification No.40/2017–Central Tax (Rate), dated 23rd October 2017 and notification No.41/2017–Integrated Tax (Rate) dated 23rd October 2017 provides  concessional rate of tax of 0.05% and 0.1% respectively, on supply of goods for exports (supplies to merchant exporters), subject to fulfilment of the following conditions, namely: -

(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.

In case of failure of Merchant Exporters to Export the Goods so procured within 90 Days, then the Supplier is liable to discharge the differential tax. The Merchant Exporter, is not made responsible, for his failure to export the Taxable Goods but the responsibility is imposed on Supplier.