Supply by Registered Supplier to Registered Receipient @0.1%

Supply to merchant exporter attracts 0.1% rate of tax. Such supplies are not zero rated supplies. When the merchant exporter ultimately export such goods, that transaction qualifies as zero-rates supply in his hands.

The Person who is doing such supplies @ 0.1% (Supplier) to the merchan exporter can claim refund of accumulated ITC on account of inverted duty structure.

The person who is procuring such goods (merchant exporter) is not allowed to claim refund of tax that he paid @ 0.1% to the supplier.