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CMA Final · Indirect Tax Laws and Practice · GST Refunds - Inverted Duty Structure and Zero Rated Supplies

Under Rule 89 of the CGST Rules, 2017, who may file the refund application for deemed export supplies when the recipient does not avail input tax credit on such supplies?

The supplier of deemed export supplies may file the refund application where the recipient does not avail input tax credit on those supplies and gives an undertaking that the supplier may claim the refund. Otherwise the recipient files. The rule allows both routes.

  1. AOnly the recipient of the deemed export supplies, in every case
  2. BThe supplier of deemed export supplies, if the recipient furnishes an undertaking that he does not avail ITC and that the supplier may claim the refundCorrect
  3. CThe Special Economic Zone developer through the specified officer
  4. DThe jurisdictional proper officer on his own motion

Explanation

The second proviso to Rule 89(1) allows either the recipient, or the supplier where the recipient does not avail ITC and furnishes an undertaking that the supplier may claim the refund. So the recipient-only option is wrong, since the supplier route exists in this situation.

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