Sir, as per notification no 41 igst exporter can procure goods at concessional rate of GST 0.1% . The question is whether this concessional rate also applies to compensation cess, if goods which are procured for export fall under compensation cess. Whether the seller of goods to exporter should charge full compensation cess on goods sold or at concessional rate?

Reply— If goods are being sold to a Merchant exporter, registered person may charge concessional rate of GST as per notification no. No.41/2017–Integrated Tax (Rate) dated 23rd October 2017 0.1% GST.

Extract of above mentioned notification is 'exempts the inter-State supply of taxable goods by a registered supplier to a registered recipient for export, from so much of the integrated tax leviable in excess of the amount calculated at the rate of 0.1 per cent'.

Thus, concessional rate only covers levy of integrated tax, hence in our opinion compensation cess is required to be paid in addition to 0.1% GST.