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

Under Rule 89(1) of the CGST Rules, 2017, a supplier of deemed export supplies (not the recipient) may file the refund application only in which situation?

A supplier of deemed export supplies can file the refund application only 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 is the proper applicant.

  1. AWhen the recipient does not avail input tax credit on such supplies and furnishes an undertaking that the supplier may claim the refundCorrect
  2. BWhen the supplier has already issued a credit note for the same supplies
  3. CWhen the goods have been admitted in full in the Special Economic Zone for authorised operations
  4. DWhen the recipient has availed input tax credit but agrees in writing to share the refund

Explanation

The proviso on deemed exports lets the recipient apply, or the supplier apply where the recipient does not avail ITC and gives an undertaking that the supplier may claim the refund. Admission in full in the SEZ is the condition for supplies to SEZ units, not for deemed exports. A recipient who avails ITC cannot let the supplier claim.

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