A short idea about drawback on deemed exports below GST regime, TED refund towards deemed exports under GST are explained here.
According to The GST regulation, the following provisions would observe under the GST regime for the deemed exports in terms of the refund of the Terminal Excise duty (TED) and drawback (DBK).
No TED refund would be available in the central excise duty is subsumed under GST.
but, for the items included under schedule 4 of central Excise Act, 1944, the TED refund would be available, provided the items are eligible for supply under the said category of the deemed exports under chapter 7 of the FTP, and there is no exemption from payment of excise duty.
Introduction of Deemed Exports
Deemed Exports is refers to supplies of goods manufactured in India (not services) which are notified as deemed exports under the Section 147 of the CGST/SGST Act, 2017. The supplies do not leave India. The payment for such supplies is received either in Indian rupees or in the convertible foreign exchange.
Deemed exports are not zero rated supplies by default, unlike the regular exports. Hence all supplies notified as supply for the deemed export will be subject to levy of taxes Example: such supplies can be made on payment of tax and cannot be supplied under a Bond/LUT.
However, the refund of tax paid on the supply regarded as Deemed export is admissible to either the supplier or the recipient. The application for refund has to be filed by the supplier or recipient (subject to certain conditions) of deemed export supplies, as the case may be.
Also Read: What is Refund of Interest under GST