• Refund on account of deemed exports

My client procures input which are taxable @5% and @18%
the rate of tax on his outward supplyt is @18%.
he supplies the product to few of his customers as deemed export which is chargeable @0.1%. due to this he has huge balance remaining un utilized in electronic credit ledger.
can refund of credit be claimed in such a case by virtue of inverted duty structure provision due to deemed exports rate being lower than rate on inputs?
Asked 1 month ago in GST

Need to check what products does he actually exports and whether those products are covered under refund for inverted duty structure and deemed export.

 

Also you might also take input at lower rate if you are going to export it.

 

I would recommend to book consultation for Better understanding and discussion.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4008 Answers
64 Consultations

5.0 on 5.0

I think he can claim refund of such deemed export as it will be covered under section 54 of CGST act.

 

You can read more here: Deemed Exports under GST- Complete & Detailed Analysis (taxguru.in)

Naman Maloo
CA, Jaipur
4008 Answers
64 Consultations

5.0 on 5.0

Refund can be claimed u/s 54(3) of CGST Act.

Vivek Kumar Arora
CA, Delhi
4408 Answers
527 Consultations

5.0 on 5.0

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