This discussion clarifies that local sales by a merchant exporter, even when paying GST from a credit ledger, are not considered deemed exports. Deemed exports require specific notification by the Central Government and cannot be processed under a Letter of Undertaking (LUT). The goods must be for specific purposes and GST paid at the time of supply, with a refund available. Local sales are simply treated as such, not as deemed exports.
13 January 2023
if a merchant exporter(under LUT) , doing local sale by charging 18 percent GST , and i paid gst from credit ledger balance , is it consider as deemed export.
14 January 2023
It can't be treated as deemed export. The goods must be notified by the Central Government as deemed exports under Section 147 of the Central Goods and Services Tax Act, 2017 (CGST Act) The transaction can be in Indian Rupees or any other convertible foreign exchange. The goods supplied as Deemed Export cannot be processed under a Letter of Undertaking (LUT) or a bond. The GST levied on the goods should be paid at the time of supply. A full refund on this tax can be claimed.
14 January 2023
if a merchant exporter did local sales @ 18 percent gst and paid 18 % gst from electronic credit ledger and while we purchase @ 18 per gst . what the transaction called as local sale