My client procures input which are taxable @5% and @18% the rate of tax on his outward supplyt is @18%. he supplies the product to few of his customers as deemed export which is chargeable @0.1%. due to this he has huge balance remaining un utilized in electronic credit ledger. can refund of credit be claimed in such a case by virtue of inverted duty structure provision due to deemed exports rate being lower than rate on inputs?
Need to check what products does he actually exports and whether those products are covered under refund for inverted duty structure and deemed export.
Also you might also take input at lower rate if you are going to export it.
I would recommend to book consultation for Better understanding and discussion.
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Thank you
My client is a manufacturing concern of sanitayware (HSN IS 6910). He procures various raw materials like clay, powders etc. and produces sanitaryware products like wash basin etc. He sales finished products to merchant exporter as deemed export and as per CBIC notification it is chargeable @0.1% instead of regular rates of tax which is @18% in case of domestic sales. Hope my concern is now clear to you.
I think he can claim refund of such deemed export as it will be covered under section 54 of CGST act.
You can read more here: Deemed Exports under GST- Complete & Detailed Analysis (taxguru.in)
Refund can be claimed u/s 54(3) of CGST Act.
