Answer

1. F

   Facts

   A supply to a merchant exporter within India is a domestic supply, not an export, so LUT does not apply. A concessional rate of 0.1 percent is available if conditions in Notification 40/2017-CT (Rate) or 41/2017-IT (Rate) are met.

2. P

   Provisions and law

   • Notification 40/2017-Central Tax (Rate)Concessional tax for intra-state supply to a merchant exporter subject to conditions
   • Notification 41/2017-Integrated Tax (Rate)Concessional 0.1 percent IGST on inter-state supply to a merchant exporter
3. A

   Analysis

   The merchant exporter must export within 90 days and give you proof, and the goods move directly to port or a registered warehouse. If conditions fail, normal rate applies. LUT is filed by the merchant exporter for its own exports.

4. C

   Conclusion

   1. 1Get the merchant exporter's order mentioning the concession.
   2. 2Charge 0.1 percent tax on the invoice.
   3. 3Collect the shipping bill copy and EGM proof within the time.
   4. 4If proof does not come, charge the balance tax.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.