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REFUND ON DEEMED EXPORT

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Pallavi P

Job

86 Points Posted on 02 April 2020

Which amount is refunded to supplier of deemed export if receipient doesnt take ITC .... is it IGST Paid on deemed export or Unutilised ITC on Inputs Used in making supplies ??

Is such supply is Turnover under rule 89(4A) which is not included in adjusted total turnover ??

If we received supplies as deemed exports & availed ITC on it , we will get refund of that ITC. do we have to exclude such ITC while calculating NET ITC ??

Replies (3)

Quick Summary

This discussion clarifies refund procedures for deemed exports. It addresses whether suppliers receive a refund of IGST paid or unutilised Input Tax Credit (ITC) on inputs used, particularly when the recipient does not claim ITC. The consensus points towards a refund of IGST paid, with specific conditions and references to GST circulars and rules, including the exclusion of such ITC from Net ITC calculations.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 03 April 2020

1. As per Circular 14/14/2017 GST Read with Section 54: Refund can claim on IGST paid on deemed Export (subject to condition that Receptient has refused to take Refund)

2. Yes Net ITC does not include the ITC for which refund is claimed under Sub rule (4A) or 4(B) of Rule 89 of CGST Act.