The introduction of the Goods and Services Tax (GST) has brought about significant changes in the Indian tax system, replacing multiple taxes with a single unified tax. Under GST, exports are zero-rated, meaning that no tax is levied on exported goods or services. However, there are certain restrictions and rules that businesses need to follow to avail of these benefits.
In this article, we will discuss the restrictions under CGST Rule 96(10) and deemed exports under GST.
Restrictions under CGST Rule 96(10):
CGST Rule 96(10) states that a registered person can claim a refund of any unutilized input tax credit (ITC) only if such credit has accumulated on account of:
However, this refund is subject to certain restrictions, the details of which are given below:
Deemed exports are supplies of goods that do not leave India but are treated as if they have been exported. The following transactions are treated as deemed exports under GST:
Deemed exports are eligible for a refund of taxes paid on the inputs used in the manufacture of the goods supplied. However, the following conditions must be met:
It is important for businesses to understand the restrictions under CGST Rule 96(10) and the rules governing deemed exports under GST to ensure that they comply with the regulations and benefit from the available refunds. By following the guidelines, businesses can minimize their tax liability and streamline their operations.
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