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

Under Rule 89 of the CGST Rules, 2017, who may file the refund application for supplies regarded as deemed exports?

The recipient of deemed export supplies may file the refund application. The supplier may also file it, but only if the recipient does not avail input tax credit and furnishes an undertaking that the supplier may claim the refund.

  1. AOnly the recipient of the deemed export supplies, in every case
  2. BThe recipient, or the supplier where the recipient does not avail input tax credit and furnishes an undertaking that the supplier may claim the refundCorrect
  3. COnly the supplier, in every case, after the goods are delivered
  4. DThe recipient or the supplier, at the option of either, whether or not the recipient avails input tax credit

Explanation

The second proviso to Rule 89(1) allows the application to be filed by the recipient of deemed export supplies, or by the supplier where the recipient does not avail ITC and gives an undertaking that the supplier may claim the refund. Option A reflects the old position before the amendment. Option D is wrong because the supplier route needs both conditions.

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