For supplying nil rated items, registration is not compulsory: Expert

We have imported stainless steel coils from Malaysia and cleared under Asean free trade agreement notification no. 46/2011-Cus dated June 1,  2011, without basic duty payment by furnishing certificate of origin in the prescribed form A. Now, the Customs want to deny the benefit stating that the Malaysian exporter is not manufacturer of the goods. Please guide.

Exemption under the said notification 46/2011 is available subject to Rules of Origin notification 189/2009-Cus (NT) dated 31.12.2009, which allows an exporter, other than a manufacturer, to obtain Certificate of Origin (COO) from the competent authorities and send to the importer. In that case, however, the Rules require the COO to show the name of the manufacturer.  If that condition is not fulfilled, the Customs can ask why the benefit cannot be denied.

We have obtained EPCG authorisation showing export product ‘A’. Can we export product ‘B’ manufactured using the same machinery and exported towards obligation?

You should first furnish to the jurisdictional regional authority, a chartered accountant certificate of past exports of item ‘B’ and a chartered engineer certificate of nexus of item ‘B’ with the imported machinery.  Once the said authority endorses the item ‘B’ as the export product and the annual average exports of ‘B’ to be maintained, you can proceed to export ‘B’ towards fulfilment of export obligation against the EPCG authorisation.
 

We are not registered under GST laws. We are making inter-state supplies of nil rated goods. Are we required to take registration?
 

No. As per Section 23 of the CGST Act 2017, any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act and an agriculturist, to the extent of supply of produce out of cultivation of land shall not be liable to registration. So, if you are exclusively making supplies of nil rated items, registration is not compulsory, even if you are making inter-state supplies.

When both the supplier and buyer are registered under GST laws but don’t want to generate e-way bill, can transporter generate the same on their behalf?

Yes. As per Rule 138 (3) of CGST Rules, 2017, where the e-way bill is not generated under sub-rule (2) and the goods are handed over to a transporter for transportation by road, the registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01 on the common portal and the e-way bill shall be generated by the transporter on the said portal on the basis of the information furnished by the registered person in Part A of FORM GST EWB-01. So, the transporter can generate the e-way Bill.

We need to generate e-way bill if the value of consignment is Rs 50,000/- or more. Is this value inclusive of the GST amount?

No. The threshold limit of Rs 50,000/- refers only to assessable value.

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