Q. 287 company x has supplied capital goods to co y against Export Promotion capital Goods Authorisation. as deemed export by charging igst and paid same to govt now X company ( supplier) filled Refund application;of such collected tax instead of by recipient. the department insist to submitt C.A. certificate U/R 89 (2)(m); whether it is compulsurey to submitt ca certificate since amount of refund is rs above 2 lakh.my question is that whether it is wrong to issue certificate since co X has charged ,collected and paid to the govt and then claimed refund on behalf of recipient. one condition for issuing certicate is that incidence of tax and interest is not passedon to any other person.whether it will be contravention of condition thanks

Ans. As per Rule 89 of CGST Rules-2017, Refund in case of “Deemed Export” can be filed either by supplier or recipient of such supplies. In case refund is filed by the supplier of such supplies then as per notification no. 49/2017-Central Tax dated 18th October, 2017 following documents are required to be submit by the supplier:

1. Acknowledgment by the jurisdictional Tax officer of the Export Promotion Capital Goods Authorisation holder that the said deemed export supplies have been received by the said Export Promotion Capital Goods Authorisation holder.

2. An undertaking by the recipient of deemed export supplies that no input tax credit on such supplies has been availed of by him.

3. An undertaking by the recipient of deemed export supplies that he shall not claim the refund in respect of such supplies and the supplier may claim the refund.

Thus, if the supplier is claiming the refund then he is not eligible to collect the tax amount from the recipient.

Also, as per Rule 89 of CGST Rules, 2017 while filing the refund application, CA certificate is mandatory to submit if the incidence of tax, interest or any other amount claimed as refund has not been passed on to any other person, in a case where the amount of refund claimed exceeds two lakh rupees

Q. 285 A registered composition scheme dealer purchase of goods from other states (inter state).but dealer same goods returns to selling supply dealer.
Question:
1.Composition scheme dealer purchase of goods returns procedure.
2.composition scheme dealer inter state sales transaction not eligible in gst act.

Ans. Composition dealers cannot make interstate sale transactions. However, he is eligible to purchase goods from other states.

Purchased Goods returned by the composition dealer will be shown under the Table 5B (CDNR) in the GSTR-4.

Q.284 In case of services provided against Arbitration , where such supply should be shown in GSTR 1 & GSTR 3B . Is it exempt supply or nil rated supply

Ans. Services provided against arbitration are exempt via notification no. 12/2017- Central tax (Rate). So it is shown under the head exempt supply under the respective GST returns.