Refund on deemed export

[Narendra Soni]

Dear Experts,

As per notification, Refund on deemed export is allowed to supplier.How it can be claimed, because sully against invalidation to domestic customer is made on payment of GST. Recipient paid invoice amount including the GST charged in bill. The recipient will also avail ITC of GST paid by him to supplier, then how supplier is entitled for refund under deemed export.Kindly suggest.

[ANITA BHADRA]

Dear Sir ,

GST Refund of Deemed Exports Supply can be claimed by either Recipient or Supplier.

Notification No. 47/2017–Central Tax, 18th October, 2017,- The supplier of deemed export supplies can claim refund in cases where the recipient does not avail of input tax credit on such supplies and furnishes an undertaking to the effect that the supplier may claim the refund”;

Regards

[JAIPRAKASH RUIA]

As per Table 6C of GSTR1, only IGST is applicable on deemed export supply. is it correct because as per FTP it is applicable GST. Even as per FORM B has the column of IGST/CGST/SGCT/CESS.

[Nash Industries I Pvt Ltd]

Please refer Circular No 14/14/2017-GST dated 06.11.2017 read with Notification 47/2017 Central Tax dated 18.10.2017.

[JAIPRAKASH RUIA]

Sir, it is a good logic that if the refund procedure is being notified under CGST act, there must be the applicability of CGST, otherwise it should have been exclusively notified under IGST notification.

[Narendra Soni]

Dear Anita Ma'am

1.But why recipient restricted to avail ITC. He paid GST amount to supplier in Bill.

2.Why supplier would entitled to claim refund of ITC,because he already recovered GST amount from recipient by charging in Bill it self ?? Would it not double benefit to supplier by way of GST recovered from recipient as well as claiming refund of GST??

Some thing is confusion/not clear.

AI Summary

Refund on deemed export: supplier may claim refund if recipient forgoes input tax credit and furnishes an undertaking.
Refund for deemed export supplies: Notification No. 47/2017 permits the supplier to claim refund where the recipient does not avail input tax credit and furnishes an undertaking authorising the supplier to claim refund; stakeholders question how this operates given the recipient pays GST and may otherwise claim ITC, and they raise related classification issues under GSTR 1 (Table 6C) and Circular No.14/14/2017 regarding IGST versus CGST treatment.