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GST ON DEEMED EXPORT

RAMIZ MALEK (ACCOUNTANT) (45 Points)

04 June 2020

My product rate of 12% while I export under deemed export rate of 0.1%

so remaining of 11.9%
will i have to claim from GST Department ???

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3 Replies

KRISSHNAN KP (4215 Points)
Replied 04 June 2020

So remaining of 11.9%
will i have to claim from GST Department ???yes it is your rights on condition the claim should be hold good

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 05 June 2020

I think you are speaking about merchant exporter concept, where supplier supplies goods to Exporter who further exports the goods outside India.

Refer Notification 40/2017-IGST(Rate).

Conditions of export and documentation are given therein. Where the transaction does not satisfy the conditions mentioned therein, the department could hold the supplier liable to payment of balance 11.9% tax. Therefore, suggest to always take an indemnification from the exporter on this aspect.

Circular 37/2018-CGST provides details of going for refund under section 54(3)(ii) - Inverted duty structure where ITC has accumulated due to such reasons.

For the exporter, where he procures goods at concessional rate he cannot go for refund with payment of tax, and only option is refund under without payment of tax.