EPCG Invalidation Letter

[Kaustubh Karandikar]

XYZ is issuing ‘EPCG Invalidation Letter’ to PQR for procuring goods from local market. 1) Is PQR required to pay GST against this supply or it is exempted being deemed export.? 2) If GST is required to be paid can refund be claimed against the GST paid by XYZ or PQR?

[DR.MARIAPPAN GOVINDARAJAN]

In my view it is deemed export.

AI Summary

Deemed export: EPCG invalidation-based local supply treated as deemed export, impacting GST liability and refund claims.
Query asked whether a local supply undertaken pursuant to an EPCG invalidation letter is subject to GST and whether paid GST can be refunded. The responding view states that the supply is to be treated as deemed export, thereby framing the GST liability and refund question within the classification of deemed export supplies.