Deemed Export: Deemed
exports means such supplies of goods as may be notified under section 147 of
the CGST Act.
As
per section 147 of the CGST Act, the government may, on the recommendation of
the Council, notify certain supplies of goods as deemed exports, where- Goods supplied do not leave India, and Payment for such supplies is received
either in Indian rupees or in convertible foreign exchange,If
such goods are manufactured in India.
Deemed
exports are not zero rated supplies by default, unlike the regular export.
Hence all supplies notified as supply for deemed export will be subject to levy
tax . Such supplies can be made on payment of tax and cannot be supplied under
a Bond/LUT. However either the supplier or recipient can apply for the refund
on the supply regarded as deemed export.
Vide Notification No. 48/2017
Central tax dated 18-10-2017, the government has notified following supplies as
deemed export:
|
S.No.
|
Description of
Supply
|
|
1
|
Supply of
goods by a registered person against Advance Authorisation
“Advance
Authorisation” means an authorization issued by the Director General of
Foreign Trade under Chapter 4 of the Foreign Trade Policy 2015-20 for import
or domestic procurement of inputs for physical export.
|
|
2
|
Supply of
capital goods by a registered person against Export Promotion Capital Goods
Authorisation
“Export
Promotion Capital Goods Authorisation” means an authorization issued by the
Director General of Foreign Trade under Chapter 5 of the Foreign Trade Policy
2015-20 for import of capital goods for physical exports.
|
|
3
|
Supply of
goods by a registered person to Export Oriented Unit
“Export
Orinented Unit” Means an Export Oriented Unit or Electronic Hardware
Technology Park Unit or Software Technology Park Unit or Bio-Technology Park
Unit approved in accordance with the provisions of Chapter6 of the Foreign
Trade Policy 2015-20.
|
|
4
|
Supply of
goods by a bank or Public Sector Undertaking specified in th Notificcation
No. 50/2017 Customs dated 30-06-2017 (as amended) against Advance
Authorisation.
|
For
supplies to EOU/EHTP/STP/BTP units in terms of Notification No. 48/2017Central
Tax dated 18-10-2017, following procedure and safeguard are prescribed:-
1. The
recipient EOU/EHTP/STP/BTP unit shall give prior intimation in a prescribed
proforma in Form-A bearing a running serial number containing the goods to be
procured, as pre-aproved by the Development Commissioner and the details of the
supplier before such deemed export supplies are made. The said intimation shall
be given to-
·
The registered supplier
·
The jurisdictional GST officer in charge
of such registered supplier; and
·
Its jurisdictional GST officer.
2. The
registered supplier thereafter will supply goods under tax invoice to the recipient
EOU/EHTP/STP/BTP units.
3. On
receipt of such supplies, the EOU/EHTP/STP/BTP unit shall endorse the tax
invoice and send a copy of the endorsed tax invoice to-
· The registered supplier
· The jurisdictional GST officer in charge
of such registered supplier; and
· Its jurisdictional GST officer
4. The
endorsed tax invoice will be considered as proof of deemed export supplies by
the registered person to EOU/EHTP/STP/BTP unit.
Disclaimer:
All the Information is based on the notification, circular and order issued by
the Govt. authority and judgement
delivered by the court or the authority information is strictly for educational
purposes and on the basis of our best
understanding of laws & not binding on anyone.
