Skip to content

CMA Final · Indirect Tax Laws and Practice · Zero Rated Supplies and Deemed Exports

Under Rule 89 of the CGST Rules, 2017, when can the supplier of deemed export supplies, rather than the recipient, apply for the refund?

The supplier of deemed export supplies may file the refund application only if the recipient does not avail input tax credit on those supplies and furnishes an undertaking that the supplier may claim the refund. Otherwise the recipient of the deemed export supplies is the person who applies.

  1. AWhenever the supplier has issued the tax invoice, whatever the recipient does about ITC
  2. BOnly when the recipient has already claimed the refund and the supplier is appealing against its rejection
  3. CWhen the recipient does not avail input tax credit on the supplies and furnishes an undertaking that the supplier may claim the refundCorrect
  4. DWhen the supplier has paid the tax in cash and the recipient is an unregistered person

Explanation

The second proviso to Rule 89(1) lets the recipient of deemed export supplies apply. The supplier may apply only where the recipient does not avail ITC on such supplies and gives an undertaking that the supplier may claim the refund. Invoice issue or cash payment alone does not give the supplier this right.

Did you get it right without looking?

One question tells you little. A timed set on Zero Rated Supplies and Deemed Exports shows your real accuracy, how long you take and where you lose marks.

Practise Zero Rated Supplies and Deemed ExportsFree diagnostic mock

More Zero Rated Supplies and Deemed Exports questions