Question

We are manufacturing & Trading unit in India and our customer is request to get GST benefit against Invalidation later of EPCG. so if we can supply without payment of GST against EPCG Licence.

Answer

Supply against EPCG Licence is not covered under zero rated supply u/s 16 of IGST Act but the same is covered u/s 147 of CGST as Deemed export as per Notification No. 48/2017 Central Tax.

The supplier may get refund of the tax paid under Deemed export. So the route will be first you have to pay GST on supply made against EPCG then take refund of the same under Notification No. 49/2017 Central tax enclosed herewith.

The detailed procedure of claiming refund is given in Circular 24/24/2017-GST. The copy of same is enclosed herewith. (Reply dt.08/12/2018)