Question

Supplier and Recipient both are “normal” tax payer. During July-17 to Oct-17, as a domestic supplier we have cleared the goods under EPCG, some clearances were also made under EPCG before introduction of GST. Till 18-10-2017, “deemed export” was not notified for refund. It was introduced vide notification 47 to 49-2017-CGST, which does not have any retrospective effect. Therefore, the question raised is whether supply during July-17, Aug-17 against E.P.C.G by domestic supplier to domestic recipient, is eligible for claiming refund under notification 49-2017-CGST? An acknowledgement by the jurisdictional tax officer is prescribed as an evidence but procedure for the same is prescribed on 18-10-17, so officer may NOT grant such acknowledgment for past clearances. Invoice endorsed by EOU is an evidence for such refund, but for units other than EOU, it is difficult to get an acknowledgement by the jurisdictional tax officer.

Answer

Notification No. 49/2017 Central Tax dt. 18-10-2017 contains provision related to deemed export. You have rightly mentioned in question that until and unless some clarification is issued, the aforesaid notification will be considered for prospective period.

So benefit against deemed export relating to GST will not be available. But benefit given in FTP relating to deemed export will apply like if you had purchased raw material against Advance Authorisation then supply against EPCG between the period from July 17 to 18-10-2017 will be deemed as export. (Reply dt.07/08/2018)