In GST, the term refund as explained in Section 54 of the CGST Act, 2017 inter alia includes refund of tax on supply of goods regarded as ‘deemed exports’. Further, Section 147 of the ibid empowers Central Government to 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.
Recently vide Notification No. 48/2017-Central Tax, dated 18th October, 2017, has notified following supplies of goods to be treated as deemed exports:
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S. No.
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Description of Supply
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1
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Supply of goods by a registered person against Advance Authorisation
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2
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Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation
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3
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Supply of goods by a registered person to Export Oriented Unit
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4
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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.
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Earlier, Rule 89 of CGST Rules, 2017, provides that the application of refund shall be filed by recipient of deemed export supplies, however it has been amended vide Notification No. 47/2017 – Central Tax, dated 18th October, 2017, to allow filing of refund claim by:
(a) the recipient 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 refund.
