GST Deemed Exports - Applicability & Refund

Deemed exports have been introduced as a category of supply under the Goods and Services Tax. The following mentions the types of supply as provided by the Government to categorise as deemed exports:

Supply of goods by a registered person against Advance Authorisation
Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation
Supply of goods by a registered person to Export Oriented Unit
Supply of gold by a bank or Public Sector Undertaking specified in the notification No. 50/2017-Customs, dated the 30th June, 2017 (as amended) against Advance Authorisation.

The above stand of the Government on the supplies to be listed as deemed exports have been clarified through Notification No. 48/2017-Central Tax dated 18th October 2017 which has been reproduced below.

Deemed Exports

Deemed exports refer to supplies of goods which are manufactured in India and the same has been notified as deemed exports under section 147 of the CGST / SGST Act, 2017. It must be noted that deemed export is applicable only in case of supplies of goods, however, the same is not applicable in the case of supplies of services. Circular no. 14/14/2017-GST dated 06.11.2017 provides the following procedure in respect of supplies to EOU/ EHTP/ STP/ BTP units i.e. deemed export :

A prior intimation in form A is required to be furnished by the recipient. Such form A should be in running serial number, as pre-approved by the Development Commissioner, and it should contain details of goods to be procured and details of supplier. Such form A must be filed by the recipient before deemed export supplies are made.
The copy of intimation in form A is required to be submitted with the registered supplier, the jurisdictional GST officer in charge of such registered supplier and the jurisdictional GST officer of the recipient unit.
The registered supplier, on receipt of such intimation in form A, will supply goods under appropriate tax invoice.
On receipt of such supplies by EOU/ EHTP/ STP/ BTP units, the unit would endorse the tax invoice. The endorsed copy of such tax invoice needs to be submitted with the registered supplier, the jurisdictional GST officer in charge of such registered supplier and the jurisdictional GST officer of the recipient unit.
The endorsed copy of the tax invoice will be considered as proof of deemed export supplies.
The recipient unit shall maintain records of such deemed export in the digital form, based upon the data elements contained in form B.

Deemed Export Refund

Rule 89 of CGST Rules, 2017 contains provisions regarding the refund related to the tax paid on deemed exports, relevant portion is reproduced hereunder: Provided also that in respect of supplies regarded as deemed exports, the application may be filed by, -

The recipient of deemed export supplies; or
The supplier of deemed export supplies in cases where the recipient does not avail of the input tax credit on such supplies and furnishes an undertaking to the effect that the supplier may claim the refund.

The recipient or the supplier of goods under deemed export can file for refund claim as per the above provisions of rule 89. Supplier of goods under deemed export can file refund claim only if the recipient of goods yet to avail the input tax credit on the same and supplier of goods should file an undertaking, along with the refund claim, mentioning that supplier can claim refund claim.

Filing Refund Claim for Deemed Export

Application in Form GST RFD-01 is required to be filed for obtaining refund by the recipient or supplier of the export, as the case may be. The application has to be accompanied by a statement containing the number and date of invoices along with such other evidence as may be notified in this behalf.

Time Limit for Filing Refund Claim

For GST refund pertaining to deemed exports, the refund application should be filed through the common portal, either directly or through a Facilitation Centre notified by the Commissioner before the expiry of two years from the date on which the return relating to such deemed export supplies is to be furnished electronically. Going through the above provisions, the time limit for filing the refund claim in case of deemed export is two years from the date on which the return relating to such export has been filed. After expiry of the period of two years, the refund claim cannot be filed.

[TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]

GOVERNMENT OF INDIA MINISTRY OF FINANCE Department of Revenue CENTRAL BOARD OF EXCISE AND CUSTOMS

Notification No. 48/2017-Central Tax

New Delhi, the 18th October 2017

G.S.R. (E).- In exercise of the powers conferred by section 147 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby notifies the supplies of goods listed in column (2) of the Table below as deemed exports, namely:-

Table

S.No.	Description of supply
(1)	(2)
1.	Supply of goods by a registered person against Advance Authorisation
2.	Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation
3.	Supply of goods by a registered person to Export Oriented Unit
4.	Supply of gold by a bank or Public Sector Undertaking specified in the notification No. 50/2017-Customs, dated the 30th June, 2017 (as amended) against Advance Authorisation.

Explanation - For the purposes of this notification, –

“Advance Authorisation” means an authorisation issued by the Director General of Foreign Trade under Chapter 4 of the Foreign Trade Policy 2015-20 for import or domestic procurement of inputs on pre-import basis for physical exports.
Export Promotion Capital Goods Authorisation means an authorisation issued by the Director General of Foreign Trade under Chapter 5 of the Foreign Trade Policy 2015- 20 for import of capital goods for physical exports.
“Export Oriented Unit” means an Export Oriented Unit or Electronic Hardware Technology Park Unit or Software Technology Park Unit or Bio-Technology Park Unit approved in accordance with the provisions of Chapter 6 of the Foreign Trade Policy 2015-20.

[F.No. 349/58/2017-GST(Pt)]

(Gunjan Kumar Verma) Under Secretary to the Government of India

Notification on GST Deemed Exports

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