CGST rate notified forintra-State supplyfor export -Notification no. 40/2017

Seeks to prescribe Central Tax rate of 0.05% on intra-State supply of taxable goods by a registered supplier to a registered recipient for export subject to specified conditions.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3,SUB-SECTION (i)]

Government of India
Ministry of Finance
Department of Revenue

Notification No. 40/2017-Central Tax (Rate)

New Delhi, the 23rd October, 2017

G.S.R..(E).- In exercise of the powers conferred by sub-section (1) of section 11 ofthe Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in thisnotification referred to as the said Act), the Central Government, on being satisfiedthat it is necessary in the public interest so to do, on the recommendations of theCouncil, hereby exempts the intra-State supply of taxable goods (hereafter in thisnotification referred to as the said goods) by a registered supplier to a registeredrecipient for export, from so much of the central tax leviable thereon under section 9of the said Act, as is in excess of the amount calculated at the rate of 0.05 per cent.,subject to fulfillment of the following conditions, namely: –

(i) the registered supplier shall supply the goods to the registered recipient on atax invoice;

(ii) the registered recipient shall export the said goods within a period of ninetydays from the date of issue of a tax invoice by the registered supplier;

(iii) the registered recipient shall indicate the Goods and Services TaxIdentification Number of the registered supplier and the tax invoice numberissued by the registered supplier in respect of the said goods in the shippingbill or bill of export, as the case may be;

(iv) the registered recipient shall be registered with an Export Promotion Councilor a Commodity Board recognised by the Department of Commerce;

(v) the registered recipient shall place an order on registered supplier forprocuring goods at concessional rate and a copy of the same shall also beprovided to the jurisdictional tax officer of the registered supplier;

(vi) the registered recipient shall move the said goods from place of registeredsupplier

(a) directly to the Port, Inland Container Deport, Airport or Land CustomsStation from where the said goods are to be exported; or

(b) directly to a registered warehouse from where the said goods shall bemove to the Port, Inland Container Deport, Airport or Land CustomsStation from where the said goods are to be exported;

(vii) if the registered recipient intends to aggregate supplies from multipleregistered suppliers and then export, the goods from each registered suppliershall move to a registered warehouse and after aggregation, the registeredrecipient shall move goods to the Port, Inland Container Deport, Airport orLand Customs Station from where they shall be exported;

(viii) in case of situation referred to in condition (vii), the registered recipient shallendorse receipt of goods on the tax invoice and also obtainacknowledgement of receipt of goods in the registered warehouse from thewarehouse operator and the endorsed tax invoice and the acknowledgment
of the warehouse operator shall be provided to the registered supplier as wellas to the jurisdictional tax officer of such supplier; and

(ix) when goods have been exported, the registered recipient shall provide copyof shipping bill or bill of export containing details of Goods and Services TaxIdentification Number (GSTIN) and tax invoice of the registered supplier alongwith proof of export general manifest or export report having been filed tothe registered supplier as well as jurisdictional tax officer of such supplier.

2. The registered supplier shall not be eligible for the above mentionedexemption if the registered recipient fails to export the said goods within a period ofninety days from the date of issue of tax invoice.

[F. No. 354/117/2017-TRU (Pt. III)]

(Ruchi Bisht)
Under Secretary to the Government of India

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