'Intermediate supplier can export through the ultimate exporter'

We have obtained an advance authorisation and got it invalidated in favour of a domestic supplier for supply of an intermediate. The domestic manufacturer has obtained an advance intermediate authorisation and imported his inputs duty-free. Now, he is about to supply that intermediate to us but we want to export the same without further processing as we have an order for that intermediate. Can we do it?

This would be a case of export through merchant exporter by the advance intermediate authorisation holder. Para 4.30 (b) of HBP says that the intermediate supplier can also supply the product(s) directly to the port for export by the ultimate exporter (holder of Advance Authorisation). In such cases, the shipping bill should be in the name of the ultimate exporter, with the name of the intermediate supplier endorsed on it. CBEC Circular No. 893/13/2009-CX, dated July 23, 2009 deals with such situations. Please note that this will discharge the export obligation of the intermediate supplier against his advance intermediate authorisation.  

We have made an export shipment and now, our buyer is paying us through Paypal. Is it permitted to receive payment through Paypal in India? We understand that if we receive payment through Paypal, we will get a credit in INR in our bank account. In this case, will we be eligible for benefit of MEIS and Advance Authorisation?

RBI does not mention Paypal in its circulars but there is a clear provision that banks have been allowed to offer the facility of repatriation of export-related remittances by entering into standing arrangements with Online Payment Gateway Service Providers (OPGSP) against   export of goods and services of value not exceeding $10,000. Banks providing such facilities must open a Nostro collection account for receipt of the export-related payments facilitated through such arrangements. Where exporters availing of this facility are required to open notional accounts with the OPGSP, all receipts should be automatically swept and pooled into the Nostro collection account opened by the bank. Since this is a permitted method of payment, there is no reason to deny any export incentives against such receipts. 

Against our exports there is shortfall in realisation of export proceeds. Our bank says that we should surrender proportionate export incentives. We have surrendered proportionate drawback. Are we required to surrender proportionate GST rebate that we took against zero-rated exports?

No. Under the GST laws, you are entitled to refund of IGST paid on export goods once they are exported. There is no requirement that export proceeds must be realised. 

We are registered as manufacturers under GST. We want to send our goods for job-work to another manufacturer in the same State and dispatch the final products from there itself. Are we required to include the job-worker’s premises in our registration as additional place of business?

If he is not registered, you have to include the job-worker’s name and address as your additional place of business -- but not if he is already registered.