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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, who may file the refund application for supplies regarded as deemed exports?

For deemed exports, the recipient may file the refund application. The supplier may also file it if the recipient does not avail input tax credit on those supplies and gives an undertaking that the supplier may claim the refund, as Rule 89(1) provides.

  1. AOnly the recipient of the deemed export supplies, in all cases
  2. BOnly the supplier, and only where the recipient has availed input tax credit
  3. CThe recipient, or the supplier where the recipient does not avail input tax credit and furnishes an undertaking that the supplier may claim the refundCorrect
  4. DOnly the supplier, after the goods are admitted in full in a Special Economic Zone

Explanation

The second proviso to Rule 89(1) allows the application to be filed by the recipient of deemed export supplies. The supplier may also file it where the recipient does not avail input tax credit and gives an undertaking that the supplier may claim the refund. The 'only recipient' option ignores this alternative, and the SEZ option relates to a different proviso.

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