Dated 23rd October, 2017

Deemed Export

Deemed Export


Deemed Exports in general means supplies wherein goods supplied do not leave India, and payment for such supplies is received either in Indian rupees or in convertible foreign exchange. Further, Section 147 of the Central Goods and service tax Act, 2017 defines Deemed Exports as such exports which may be notified on the recommendations of the council. Though the Foreign Trade Policy 2015-20 defines Deemed Export, however it was observed that the GST regime would also separately define supplies which would be categorised as deemed exports.

In furtherance of Section 147 of the CGST Act, the Central Government on 18th Deemed Exports now defined under the CGST Act, 2017 of October, 2017 has cleared the ambiguity and apprehensions of trade by issuing notifications and further clarifying as to which supplies would be regarded as deemed exports and thus assisting the exporters to plan their exports accordingly under various licenses/authorisation taken by them. In addition to the above clarification issued as to who should be filing the Refund application in respect to such supplies of deemed exports.

Deemed Exports now defined under the CGST Act, 2017

The following supplies are categorised as Deemed Exports1:
  • Supply of Goods by a registered person to a holder of Advance Authorisation (AA).
  • Supply of Goods by a registered person to a holder of Export Promotion Capital Goods Authorisation (EPCG).
  • Supply of Goods by a registered person to an Export Oriented Undertaking (EOU).
  • Supply of Gold by a bank/PSU against Advance Authorisation.(as specified in notification 50/2017-cus dated 30.06.2017)

Filing of Refund Application in case of Deemed Exports

The application for refund of tax, interest, penalty, fees or any other amount in case of Deemed Exports was earlier to be filed by only the recipient of deemed supplies. However, now the refund application in respect of deemed export supplies can be filed by2

  1. Recipient of Deemed Export Supplies.
  2. The supplier of Deemed Export Supplies in cases where the recipient does not avail Input Tax Credit on such supplies and furnishes an undertaking that the supplier may claim refund.

Other Changes

  • For refund of IGST paid on export of goods/ services for export without payment of IGST under Bond/LUT and furnishing of an undertaking binding to pay tax due along with the interest, has been given relaxation for the payment of tax/interest thereon if exports not made within a period of 15 days after the expiry of 3 months from the date of issue of invoice for export or such further period as may be allowed by the commissioner.
  • Statement 2- Exports of Services with payment of tax & Statement 4- On account of supplies made to SEZ unit or SEZ Developer (on payment of tax) of RFD-01 have been changed
  1. Notification No. 48/2017 dated 18.10.2017
  2. Notification No. 47/2017 dated 18.10.2017

Deemed Export

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Deemed Export

Deemed Export
Founder Member

Bhaskar Thakkar

Chief Executive officer

BT Associates, India

Twenty years of experience in tax practice. Specialist in structuring & planning and tax optimization under indirect tax. Lead eastern India indirect tax practice of Ernst & Young in past.