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

Under the refund rule in the CGST Rules, 2017 dealing with the application for refund, who may apply for refund in respect of supplies regarded as deemed exports?

Refund on deemed exports can be claimed by the recipient. The supplier may also claim it, but only if the recipient does not avail input tax credit on those supplies and gives 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 ITC and gives an undertaking that the supplier may claim the refundCorrect
  3. COnly the supplier, in every case, without any undertaking
  4. DThe Customs officer at the port of export

Explanation

The second proviso to the sub-rule allows the application to be filed by the recipient of deemed export supplies, or by the supplier where the recipient does not avail ITC on the supplies and furnishes an undertaking that the supplier may claim the refund. The option stating only the recipient is wrong because it ignores the supplier route.

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