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IndianTaxPert — Simplifying Business Registration & Compliance in India | Company Incorporation • LLP Formation •
Indian Tax Expert helps traders and exporters obtain Merchant Exporter status under GST as per Notification No. 41/2017 (IGST Rate) and 40/2017 (CGST Rate) dated 23-10-2017. Our expert team ensures smooth registration, concessional GST benefits, and complete export-related GST compliance—end to end.
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Key Benefits of Merchant Exporter Status
Financial efficiency, tax advantages, and smoother export operations
1
Purchase Goods at 0.1% GST
Exporters can procure goods at a highly reduced GST rate, avoiding heavy upfront tax payments and significantly improving working capital.
2
Export under LUT / Bond
Goods can be exported without payment of GST after filing a Letter of Undertaking (LUT) or Bond, ensuring tax-free exports.
3
Input Tax Credit Available
The 0.1% GST paid on purchases can be claimed as Input Tax Credit, further reducing overall tax liability.
4
Better Cash Flow
No blocking of funds in GST refunds, making export operations financially smoother and more predictable.
Conditions to Avail 0.1% GST on Export Purchases
Mandatory requirements to claim concessional GST benefits for merchant exporters
Eligibility & Compliance Conditions
- Supplier must be GST registered and issue a valid tax invoice
- Goods must be exported within 90 days from the invoice date
- Exporter must hold a valid RCMC from an EPC or Commodity Board
- Goods must move directly from supplier location to port / ICD / airport
- Exports must be made under LUT or Bond
- Supplier GSTIN must be mentioned in shipping bill and export documents
- Proof of export (EGM, Shipping Bill) must be shared with supplier and GST office
Documents Required for Merchant Exporter Registration
- Business Questionnaire
- PAN Card of Entity
- Import Export Code (IEC)
- Certificate of Incorporation / Registration
- MOA / LLP Agreement / Partnership Deed
- CA-certified export data (last 3 years, if applicable)
- Board Resolution / Authorization Letter
- GST Registration Certificate
Step-by-Step Process to Become a Merchant Exporter
A structured approach to start exports with concessional GST benefits
1
Business Registration & PAN
Register your Company, LLP, Firm, or Proprietorship with export as a business activity and obtain PAN.
2
Open Current Bank Account
A current account is mandatory for IEC registration and all export-related transactions.
3
Apply for Import Export Code (IEC)
IEC is obtained online through the DGFT portal and is usually issued within one working day.
4
Obtain RCMC
Register with the relevant Export Promotion Council or Commodity Board to become eligible for 0.1% GST benefits.
✔ Indian Tax Expert manages the entire merchant exporter registration and compliance process for you.
Compliance Responsibilities under GST
Clear division of responsibilities between supplier and merchant exporter
Supplier (Manufacturer)
- Issue GST invoice at concessional rate of 0.1%
- Maintain purchase order and tax records
- Collect proof of export from merchant exporter
Merchant Exporter
- Ensure export of goods within 90 days
- Export only under LUT or Bond
- Mention supplier GSTIN in export documents
- Submit shipping bill and EGM to supplier’s GST office
âš Failure to comply with GST conditions may result in withdrawal of concessional 0.1% GST benefits.
