Deemed Export

[THYAGARAJAN KALYANASUNDARAM]

Dear Friends,

One of my clients sold the goods to exporters by charging 0.1% as deemed exports. In turn, the exporter has also exported the goods within the stipulated time. However, the exporter has not stated the GST No. & sale invoice no. in the shipping bill or Bill of Export also not registered with the Export Promotion Council or a Commodity Board recognized by the department of commerce. Further, the purchase order of the exporter is also not produced before the respective jurisdictional tax officer of the registered supplier. Due to this, the department asks my client to pay the tax amount. Please suggest to me, how to resolve this issue.

Thanks in Advance.

AI Summary

Deemed export compliance risks loss of concessional rate; amend shipping bill or recover differential tax.
Non fulfilment of notification conditions for treating supplies as deemed exports-notably absence of supplier invoice/GST details in the shipping bill and lack of exporter registration with an Export Promotion Council, and potential lack of purchaser order disclosure-can lead to denial of the concessional tax rate. Remedies include amending export documents where pre existing documentary evidence permits, issuing debit notes to recover differential tax with interest, and seeking contractual allocation of tax liability; risk of penalties and judicial determination on procedural versus substantive non compliance remains.