gst refund on deemed export

[Pabitra Basak]

Respected Sir / Madam,

Suppose I have purchased Raw Material worth ₹ 10,00,00,000.00 G.S.T. rate 5 % therefore input G.S.T. is ₹ 50,00,000.00 now i have sold goods worth ₹ 5,00,00,000.00 for ₹ 7,50,00,000.00 as domestic sale G.S.T. rate 5 % and goods worth Rs. 50,00,000.00 for Rs 7,50,00,000.00 as deemed export rate 0.1 %. Therefore my total output G.S.T. stands for ₹ 37,50,000.00 for domestic and ₹ 75,000.00 for deemed export. My question is whether i am eligible refund of remaining input G.S.T. or not and if i am eligible for refund then under which scheme am i eligible for refund i.e. whether refund under unutilised credit or under inverted tax structure. How much amount i can claim for refund and what will be the calculation. Please help by giving your precious advice in details

[YAGAY and SUN]

You would able to claim the full ITC. However, the merchant exporter would be required to provide you the documentary evidence of final export of goods.

[Spudarjunan S]

Dear Sir,

Kindly clarify whether you are engaged in Merchant Export Transaction as per notification no.40/2017 C.T(R) dated 23rd October 2017 / 41/2017 I.T(R) dated 23rd October 2017. If so you can go for refund under Rule 89 (4B) of CGST rules.

You will get refund of input and input services used for making such supplies.

[SHARAD ANADA]

You are eligible for refund as inverted dutyd. PL refer circular No 37/11/2018 Para 13

 

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Sharad

AI Summary

Input tax credit refund available for deemed exports subject to documentary proof and merchant exporter refund procedure.
A taxpayer making deemed export supplies may claim full input tax credit subject to production of documentary evidence of final export and compliance with the merchant exporter refund procedure permitting refund of inputs and input services used for such supplies. Forum responses also note an alternative basis for refund under the inverted duty structure, indicating two possible refund routes depending on the taxpayer's facts and documentary support.