Benefit of Exemption for Deemed Export

[Vinay Kunte]

It is given to understand the the Deemed Export are exempted Under IGST as per provisions of certain notifications issued in October 2017. Similarly, the IGST @0.1% or CGST/SGST or UTGST @0.05%, respectively, is to be paid by the supplier of Goods to other Registered person for Exports (Erstwhile Merchant Exporters).

My query is whether the ).1% IGST or 0.05% CGST is to be paid on goods supplied by a registered dealer under Deemed exports to other registered person or should be exempted in totality?

Please provide your valuable guidance.

AI Summary

Deemed export tax treatment: supplier pays tax at normal rate with refund available under GST rules.
Deemed export supplies are subject to tax at the normal rates and the supplier may claim refund of such tax under the refund provisions where the recipient has not availed input tax credit and furnishes an undertaking permitting the supplier to claim refund. Refund claims by suppliers require prescribed evidence, including acknowledgement of receipt by Advance Authorisation or Export Promotion Capital Goods holders or a recipient-signed invoice, and undertakings that input tax credit has not been availed and that the recipient will not claim the refund.