Refund On Deemed Export under concessional Rate

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Hukam Chand (Querist)
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29 December 2022 Dear Sir,
I want to ask an question regarding the deemed export
My Firm Name name is ABC Pvt Ltd sell the goods to to our party Prime Goods Pvt Ltd (Which is located at Kerla and he is aleardy registered in Export promotional Council) on 16th october, 2022 at 0.1% concessional Rate(Deemed Export) Basic Value 2850255/- @0.1% 2850/- total Invoice Value 2853105/- apart from of this, i also sell the goods to my another party whose name is voltaa india pvt ltd (located at Delhi) on 17th october, 2022 basic value is 2537932/- @18% 456828/- total invoice value 2994760/-
my october month all inputs is 409628/- (my all input are exist under 18% tax slab)
i have aleardy filed the october, 2022 return in month of november 2022 after all itc adjustment.
So, I want to know about Can i eligible for the refund under Deemed Export or Inverted Duty tax Structure (one of these)?
What is the formula for find out refund amount (under deemed export or inverted duty structure) ? and please elaborate for this calculation
whom i should claim refund under deemed export or inverted duty structure please suggest?
and what is the document should i obtained for filling the refund process and also explain this example ?

Thanks & Regards
Abc Pvt Ltd
Email: sharma.hunny826@gmail.com

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 July 2024 Based on the information provided, it appears you have two potential scenarios where you could claim a refund: under the Deemed Export scheme or under the Inverted Duty Structure. Let's break down each scenario and the corresponding calculations:

### 1. Deemed Export Refund:

**Conditions for Deemed Export Refund Eligibility:**
- Deemed exports refer to supplies of goods to specified entities as notified under GST law, where the goods do not leave the country and payment is received in Indian rupees.
- Prime Goods Pvt Ltd in Kerala, being registered with an Export Promotion Council, likely qualifies as a recipient for deemed export benefits.

**Calculation for Deemed Export Refund:**
- The refund amount under deemed export is typically 0.1% of the basic value of the supplies made to Prime Goods Pvt Ltd.
- In your case, the basic value of the supplies to Prime Goods Pvt Ltd is ₹2,850
- This ₹2,850 represents the refund eligible under the deemed export scheme.

**Documents Required for Deemed Export Refund:**
- **Invoice to Prime Goods Pvt Ltd:** Clearly showing the concessional rate of 0.1% and the basic value.
- **Declaration from Prime Goods Pvt Ltd:** Confirming that the supplies are for deemed export purposes and that they are registered with an Export Promotion Council.

### 2. Inverted Duty Structure Refund:

**Conditions for Inverted Duty Structure Refund Eligibility:**
- Inverted duty structure arises when the rate of tax on inputs (raw materials, etc.) is higher than the rate of tax on the output (final product).
- In your case, all inputs are taxed at 18%, while the output to Prime Goods Pvt Ltd is at 0.1% and to Voltaa India Pvt Ltd is at 18%.

**Calculation for Inverted Duty Structure Refund:**
- Calculate the Input Tax Credit (ITC) accumulated on inputs taxed at 18%.
- The refund amount is the excess ITC available after adjusting against output tax liability.

**Documents Required for Inverted Duty Structure Refund:**
- **Invoices:** Showing purchases of inputs taxed at 18%.
- **GST Returns:** Demonstrating the excess ITC available after adjusting against output tax liability.

### Claiming the Refund:

- You need to file for refunds separately for each scheme: one for Deemed Export and one for Inverted Duty Structure.
- Use the appropriate refund forms (such as GST RFD-01 for GST refunds in India) and attach supporting documents (invoices, GST returns, declarations, etc.).
- Submit the refund application online through the GST portal.

### Conclusion:

Based on the details provided:
- You are eligible for a refund under both Deemed Export and Inverted Duty Structure schemes.
- For Deemed Export, the refund amount is straightforward (0.1% of the basic value of supplies to Prime Goods Pvt Ltd).
- For Inverted Duty Structure, calculate the excess ITC available after adjusting against output tax liability.

Ensure all documents are in order and accurately reflect the transactions and refund eligibility criteria to expedite the refund process. If you are unsure about any specific details or calculations, it's advisable to consult with a GST expert or tax consultant who can provide tailored advice based on your business's circumstances.