Question6:

We are Manufacture cum Merchant Exporters, Previous ,i.e.before GST, we are collecting the export cargoes from our vendors from transports and Exports from our registered  office Mumbai through JNPT, MUMBAI, AIR CARGO COMPLEX. Now we are collecting the cargoes to our factory at Gujrat and then bringing to port for export. Now, here I want to know can we keep our previous practice i.e before GST what we were doing ?

Answer:
The problem which you are facing is because there was no room for export of goods by merchant exporter you were supposed to take tax paid goods from manufacturer The second problem is re bundling of material at go down from where the goods are to be exported. Now this problem is solved after issue of notification no 40 dated 23.10 2017  of central tax which permits supply of goods from the place of supplier to the exporter on payment of nominal tax of 0.1%(point one percent) even the merchant exporter can use it for payment of tax when the balance in ITC account is sufficient pay tax The goods can be cleared to export ware house of the registered buyer (merchant exporter) In GST law you are more comfortable because now you can procure goods from traders also on the other hand in earlier case you were had to procure goods from the manufacturer only to take benefit under central excise .Accordingly present system is more flexible and can be used more comfortably Please note that notification no 40 is a conditional notification and you have to fulfill the required conditions. (Reply dt. 08/11/2017)