Find
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.
GST
Merchant exporter supplies are not under LUT
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Provisions
Notification 40/2017-Central Tax (Rate); Notification 41/2017-Integrated Tax (Rate)
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.
Close
- Get the merchant exporter's order mentioning the concession.
- Charge 0.1 percent tax on the invoice.
- Collect the shipping bill copy and EGM proof within the time.
- If proof does not come, charge the balance tax.
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