WHAT IS PROCEDURE OF DEEMED EXPORTS UNDER GST?

December 17, 2021
MSAadmin

Ever wondered what procedure needs to be followed for deemed exports under GST? If your answer is yes, then we will help you to understand it better. So, let us begin.

The central government on the recommendation of council, hereby notified that the following shall be treated as Deemed exports under GST vide Notification No.48/2017- Central Tax dated 18th October, 2017.

  1. Supply of goods by a registered person against Advance Authorization

  2. Supply of capital goods by a registered person against Export Promotion Capital Goods Authorization

  3. Supply of goods by a registered person to Export Oriented Unit

  4. Supply of gold by a bank or Public Sector Undertaking specified in the notification No. 50/2017-Customs, dated the 30th June, 2017 (as amended) against Advance Authorization.

The following procedure and safeguards are prescribed in respect of Deemed Export vide circular No.14/14/2017 dated 6th November, 2017

(i) 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-approved by the Development Commissioner and the details of the supplier before such deemed export supplies are made. The said intimation shall be given to ―

       (a) The registered supplier;

       (b) The jurisdictional GST officer in charge of such registered supplier; and

       (c) Its jurisdictional GST officer.

(ii) The registered supplier thereafter will supply goods under tax invoice to the recipient EOU / EHTP / STP / BTP unit.

(iii) 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 –

      (a) The registered supplier;

      (b) The jurisdictional GST officer in charge of such registered supplier; and

      (c) Its jurisdictional GST officer.

(iv) The endorsed tax invoice will be considered as proof of deemed export supplies by the registered person to EOU / EHTP / STP / BTP unit.

(v) The recipient EOU / EHTP / STP / BTP unit shall maintain records of such deemed export supplies in digital form, based upon data elements contained in “Form-B”. The software for maintenance of digital records shall incorporate the feature of audit trail. While the data elements contained in the Form-B are mandatory, the recipient units will be free to add or continue with any additional data fields, as per their commercial requirements. All recipient units are required to enter data accurately and immediately upon the goods being received in, utilized by or removed from the said unit. The digital records should be kept updated, accurate, complete and available at the said unit at all times for verification by the proper officer, whenever required. A digital copy of Form B containing transactions for the month, shall be provided to the jurisdictional GST officer, each month (by the 10th of month) in a CD or Pen drive, as convenient to the said unit.

(vi) The above procedure and safeguards are in addition to the terms and conditions to be adhered to by a EOU / EHTP / STP / BTP unit in terms of the Foreign Trade Policy, 2015-20 and the duty exemption notification being availed by such unit.

Did this article help? Do you have more queries? If yes, then get in touch with us. We are a Chartered Accountant firm in Bangalore and we deal with such assignments.

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