Refund under GST

[Rajesh Kumar]

Sir/Madam

A manufacturer sales goods to a merchant exporter at concessional rate @0.1%. Merchant export exports the said goods.

Now the supplier of goods is want to file refund. Under which category he will file refund I.e. either he required to file under inverted duty structure or export of goods without payment of duty ?

AI Summary

Inverted duty structure: supplier to merchant exporter may claim refund of unutilised ITC under CGST refund framework.
A supplier who sells to a merchant exporter at a concessional rate may claim refund on account of inverted duty structure because such supplies are not nil or fully exempt and can create unutilised input tax credit; official guidance notes the concessional rate is optional, exporters may take credit of the concessional tax, and exports under this scheme must proceed under bond or LUT rather than by paying integrated tax. Views differ on how the merchant exporter should seek refunds.