Special GST Rate for Merchant Exporter on Purchase @ 0.1%
When an Exporter Purchases the goods,he has to pay GST
However on Sales,He can give Bond
In this case,he will have input but no output
So he has to claim refund of this input and his funds keep on blocking for a long time
So,in this case,Government has given a concession that on Purchase,he will have to pay less GST @ 0.1%
| Normal Case | Exporter Giving Bond(Normal Scheme) | Exporter Giving Bond(0.1% Scheme) | |||||
| Purchase | 100000 | Purchase | 100000 | Purchase | 100000 | ||
| GST 5% | 5000 | GST 5% | 5000 | GST 0.1% | 100 | ||
| TOTAL | 105000 | TOTAL | 105000 | TOTAL | 100100 | ||
| Sales | 140000 | Sales | 140000 | Sales | 140000 | ||
| GST 5% | 7000 | GST 5% | 0 | GST 5% | 0 | ||
| TOTAL | 147000 | TOTAL | 140000 | TOTAL | 140000 | ||
| Output | 7000 | Output | 0 | Output | 0 | ||
| Input | 5000 | Input | 5000 | Input | 100 | ||
| GST Payable | 2000 | GST Payable | 0 | GST Payable | 0 | ||
| GST Refund | 5000 | GST Refund | 100 | ||||
| (More Funds Blocked) | (Less Funds Blocked) | ||||||
Conditions to be fulfilled to Claim Scheme
He should be a Merchant Exporter and not a Manufacturer Exporter
Sale Should be made within 90 Days of Invoice Date
Vendor shall deliver goods direct at Custom Port/Airport(and not to exporter)
Exporter shall provide Vendor as well as GST Departmnent copy of export
Q1 - A factory purchasing Raw Material from Vendor,converting into finished goods and exporting them
Can they purchase goods @ 0.1% scheme?
View AnswerNo he cannot Purchase goods @.1% scheme as he is a manufacturer
Q2 - An Export House purchasing goods from Vendor and packing it in its premises and exporting them
Can they purchase goods @ 0.1% scheme?
View AnswerNo, Export House cannot add any packing material and also vendor shall deliver goods direct
at custom port/Airport
Q3 - A software company purchasing servers and providing techinical service outside India
Can they purchase goods @ 0.1% scheme?
View AnswerNo, this scheme is not available to Service provider
Q4 - An Export House RS Exports gets order for 1000 kg of Stainless steel
It purchases goods at following Rates(GST Extra)
GST Rate of good is 12%
| Party | QTY | RATE | AMT |
| A Ltd,Delhi @ 40/kg | 300 | 40 | 12000 |
| B ltd,Punjab @ 60/kg | 500 | 60 | 30000 |
| C ltd,Delhi @ 50/kg | 200 | 50 | 10000 |
| 52000 |
A ltd provides goods to Export House premises while B and C supply it directly to Custom Port
RS Exports sells goods @ $5/kg submitting bond/lou to govt
Prepare GST Computation and Refund Available
| Exporter Giving Bond(0.1% Scheme) | Exporter Giving Bond(Normal Scheme) | |||
| Purchase from B | 30000 | Purchase from A | 12000 | |
| purchase from C | 10000 | Gst @12% | 1440 | |
| GST 0.1% | 40 | |||
| TOTAL | 40040 | TOTAL | 13440 |
| Sales | 300000 |
| GST 5% | 0 |
| TOTAL | 300000 |
| Output | 0 |
| Input | 1480 |
| GST Payable | 0 |
| GST Refund | 1480 |
