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

Under the Central Goods and Services Tax Rules, 2017, a supplier of deemed export supplies may himself file the refund application instead of the recipient only if:

The supplier of deemed export supplies can file the refund claim only where the recipient does not avail input tax credit on the supplies and furnishes an undertaking that the supplier may claim the refund. Otherwise the application is filed by the recipient.

  1. Athe recipient does not avail input tax credit on such supplies and furnishes an undertaking that the supplier may claim the refundCorrect
  2. Bthe supplier has already paid tax on the supply at the standard rate and has not issued any invoice
  3. Cthe recipient is an unregistered person located within the same State as the supplier
  4. Dthe supplier obtains an advance ruling permitting him to claim the refund

Explanation

The second proviso to the rule on refund applications allows the recipient to apply for refund on deemed exports. The supplier may apply instead only where the recipient does not avail ITC on those supplies and gives an undertaking that the supplier may claim the refund. The other options add conditions that are not in the rule.

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