Full News

What is deemed export as per GST?

What is deemed export as per GST?

Generally people think that export happens when goods or services actually go out of the country. But that is not the case. The Govt of India, has defined some circumstances where, even though goods do not leave the country, they are consdered as have been exported. These cases are called by the lawmaker as "deemed exports". for example: when a person sells goods to SEZ, it may be called as a deemed export.

As per GST supply of goods/services shall be considered as deemed export when:-

 

 

The following categories of supply of goods by the main/ sub-contractors shall be regarded as "Deemed Exports" under this Policy, provided the goods are manufactured in India:

 

  • Supply of goods to-

  •   a) Export oriented units (EOU)
  •  b) Software Technology Parks (STPs)
  •  c) Electronic Hardware Technology Parks (EHTPs)
  •  d) Bio Technology Parks (BTP)

    •  

  • Supply of goods against Advance Licence/Advance Licence for annual requirement/DFRC under the Duty Exemption /Remission Scheme.

    •  

  • Supply of capital goods to holders of licences under the Export Promotion Capital Goods (EPCG) scheme

    •  

  • Supply of goods to projects financed by multilateral or bilateral agencies/funds as notified by the Department of Economic Affairs, Ministry of Finance 

    • under International Competitive Bidding in accordance with the procedures of those agencies/ funds, where the legal agreements provide for tender evaluation without including the customs duty;

    Ask a Question Create a Ripple(News)