Question : We are merchant exporters dealing in various
products. As per current procedure, we purchase goods from
a particular factory against CT1/ARE1 so that no excise is levied
on us. After goods are exported, we provide proof of export
and Form H (for sales tax exemption) to the concerned factory.
How would GST impact us and what will be the process now?
Answer: Taxable event in the GST regime is supply of goods.
Exports being inter-State supply, you would be required to
obtain GST registration.
The manufacturer would be supplying
you the goods on the payment of IGST or CGST and SGST/
UTGST as applicable. You may avail of input stage credit of the
tax paid on goods and services and export the goods under
bond/LUT. Unutilized credit can be availed as refund. Alternatively,
you may export the goods on payment of integrated
tax and refund of integrated tax would be available to you.