Section 2(39) of the CGST Act, 2017 defines deemed exports means such supplies of goods as may be notified under section 147 of the Act.
As per section 147 of the CGST Act, 2017 the Government may, on the recommendations 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.
The term ‘deemed exports’ is often referred in the context of Foreign Trade Policy. Deemed exports under DGFT cover supply of goods under advance authorisation, supply to EOU/STP/EHTP/BTP, supply of capital goods against EPCG etc. It allows the one of three benefits viz, refund of Terminal excise duty, duty drawback and advance authorisation to supplier of goods in FTP. Under GST Law, relevance of deemed exports is limited to grant of refund of taxes on supply of goods regarded as deemed exports.
In terms of rules of refund application of refund shall be filed by recipient of deemed export supplies. Refund process has been discussed in detail in Chapter 14 of the Book. |
