1. Section 2(39), 147, 54(1), Explanation 1, 2(b) of CGST act,
2. 2nd Proviso to Rule 89(1)
What is Deemed Export
1. Definition of Deemed export
2(39) “deemed exports” means such supplies of goods as may be notified under section 147;
2. Section 147 of CGST Act, 2017
147. The Government may, on the recommendations of the Council, notify certain supplies of goods as deemed exports, where goods supplied do not leave India, and payment for such supplies is received either in Indian rupees or in convertible foreign exchange, if such goods are manufactured in India.
|S. No.||Description of Supply||Explanation|
Supply of goods by a registered person against Advance Authorization. [Provided that goods so supplied, when exports have already been made after availing input tax credit on inputs used in manufacture of such exports, shall be used in manufacture and supply of taxable goods (other than nil rated or fully exempted goods) and a certificate to this effect from a chartered accountant is submitted to the jurisdictional commissioner of GST or any other officer authorised by him within 6 months of such supply,;
If a Registered person supplying goods to any person against Advance authorization then that supply by the registered person will be deemed export u/s 147.
Provided further that no such certificate shall be required if input tax credit has not been availed on inputs used in manufacture of export goods.] (Inserted by Notification 01/2019 DATED 15-01-2019)
Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation
If a Registered person supplying Capital goods to any person against Export promotion capital goods authorization then that supply by the registered person will be deemed export u/s 147.
Supply of goods by a registered person to Export Oriented Unit
Any supply of goods to Export oriented unit is deemed export.
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.
Notified person supplying gold to a person against Advance authorization is deemed as deemed export
Note: Scheme of Advance authorization, Export promotion capital goods authorization is specified in Foreign Trade policy 2015-20.
Refund of Deemed supply.
Section 54(1) : Any person claiming refund of any tax and interest, if any, paid on such tax or any other amount paid by him, may make an application before the expiry of two years from the relevant date in such form and manner as may be prescribed:
Explanation 1 to section 54: “refund” includes refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies, or refund of tax on the supply of goods regarded as deemed exports, or refund of unutilized input tax credit as provided under sub-section (3).
Explanation 2(g) to section 54: Relevant Date “In the case of supply of goods regarded as deemed exports where a refund of tax paid is available in respect of the goods, the date on which the return relating to such deemed exports is furnished”.
HENCE PERSON SUPPLYING GOODS AS DEEMED EXPORT CAN CLAIM THE REFUND AS PER SECTION 54(1) READ WITH EXPLANATION TO IT.
2nd Proviso to Rule 89(1): Provided also that in respect of supplies regarded as deemed exports, the application may be filed by, –
(a) the recipient (Export oriented unit, Advance authorization or export promotion capital goods authorization holder) of deemed export supplies; or
(b) the supplier of deemed export supplies in cases where the recipient does not avail of input tax credit on such supplies and furnishes an undertaking to the effect that the supplier may claim the
Rule 89(2)(g) and notification 49/2017- CGST rule provides for documents to be accomplished with refund application GST-RFD-01
HENCE A SUPPLIER CAN CLAIM REFUND OR RECIPIENT OF GOODS CAN APPLY FOR THE REFUND IN FORM GST RED-1
(For any query Author CA Robin Garg can be reached at email@example.com)