31 May 2024
We have cleared one shipment in Oct-23 to our customer under advance authorisation/advance license of customer. In this supply customer is not paying tax value to us, we have paid tax & filed return as per outward liability. Can we claim GST refund in above case as this supply under Notification No. 48/2017-Central Tax. ???
07 July 2024
Under Notification No. 48/2017-Central Tax, dated October 18, 2017, exports made under an Advance Authorization or Export Promotion Capital Goods (EPCG) authorization are considered as exports even if the payment is received in Indian rupees, provided certain conditions are met. Here’s a breakdown of the conditions and implications for claiming GST refund in your case:
### Conditions under Notification No. 48/2017-Central Tax: 1. **Nature of Supply:** The supply must be made under an Advance Authorization or EPCG authorization issued by the competent authority.
2. **Export Consideration:** The export proceeds for the supply should be realized in Indian rupees within the time specified under the Foreign Trade Policy (FTP) or extended period, but in any case not later than 12 months from the date of issue of the invoice for export.
3. **GST Treatment:** Even if the consideration is not received in foreign exchange, the supply will be treated as a deemed export and qualifies for GST refund, provided all other conditions are met.
### Steps to Claim GST Refund: Based on the above conditions, if your supply meets the criteria specified in Notification No. 48/2017-Central Tax:
- **File GST Refund Application:** You can file a GST refund application using Form RFD-01 on the GST portal.
- **Documentary Requirements:** Ensure you have all necessary documentation, including: - Copy of the shipping bill or bill of export. - Invoice raised for the export supply. - Proof of receipt of foreign exchange or realization of export proceeds within the prescribed time frame, or evidence that the payment was made in Indian rupees as per FTP provisions.
- **Verification and Processing:** The GST authorities will verify the application and supporting documents.
- **Refund Processing:** If everything is in order, the refund of GST paid on the exported goods will be processed and credited to your bank account.
### Professional Assistance: Given the technicalities involved in claiming GST refunds under such notifications, it’s advisable to consult with a GST practitioner or tax consultant. They can provide guidance specific to your case, ensure compliance with GST rules, and help navigate any challenges in the refund process.
By adhering to the conditions stipulated in Notification No. 48/2017-Central Tax and following the correct procedure for claiming GST refund, you can maximize your chances of a successful refund application for the supply made under Advance Authorization or EPCG authorization.
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