Gst rate for export

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mangesh chitnis (Querist)
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03 April 2018 We received an enquiry for our product. Buyer is an EOU & will export our material as it is. He is asking us to charge GST @ 0.1% only. Can we do that & what will be the before & after dispatch procedure to be followed.

Our material is of 18% GST Class.

CA Suresh Jain

CA Suresh Jain (Expert)
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03 April 2018 Your Buyer is right. Please note that you and your buyer need to follow the provisions of Notification No. 41/2017--Integrated Tax (Rate) dated 23/10/2017

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mangesh chitnis

mangesh chitnis (Querist)
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04 April 2018 If the buyer is from same state then 0.05% SGST + 0.05% CGST... right??? for this any other notification available???

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Guest

Guest (Expert)

04 April 2018 I beg to differ .If your buyer is merchant exporter then and only then you have to charge him 0.1% orelse you will charge him full rate applicable to goods.

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Guest

Guest (Expert)

04 April 2018 As per Foreign Trade Policy “Merchant Exporter” means a person engaged in trading activity and exporting or intending to export goods .

EOU is manufacturer of goods therefore benefit of 0.1% is not available.

mangesh chitnis

mangesh chitnis (Querist)
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05 April 2018 yes, he is a merchant exporter & will export the material as it is purchased from us. So I need notification no. under which I can charge him 0.05% CGST & 0.05% SGST.

Guest

Guest (Expert)

05 April 2018 If he not an EOU and he is a merchant exporter then you can charge him 0.1%.

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CA Suresh Jain

CA Suresh Jain (Expert)
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05 April 2018 This supply is under IGST and therefore, you need to charge IGST 0.10% and not CGST/SGST

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Guest

Guest (Expert)

06 April 2018 I beg to differ, as supply is made to merchant exporter therefore applicability of IGST or SGST+CGST depend upon whether supply is inter-state supply or intra-state supply.