Section 147-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.
Analysis- This section deals with notification of certain supplies of goods as deemed exports upon recommendation by the GST Council.
Section 2(3)- “deemed exports” means such supplies of goods as may be notified under section 147;
Deemed exports are those supplies of goods that are notified as ‘deemed exports’ where:
(a) The goods supplied do not leave India;
(b) Payment for such supplies is received in Indian Rupees/ Convertible Foreign Exchange;
(c) Such goods are manufactured in India.
The definition of ‘deemed exports’ under this Act is in line with the definition of ‘Deemed
Exports’ under Chapter 07.01 of the Foreign Trade Policy 2015-20. ‘Deemed Export’ under the FTP 2015-20 covers supply of goods to EOU/STP/EHTP/BTP, supply of goods under advance authorisation etc. and hence provides for refund, drawback and advance authorisation to the supplier of goods. On the other hand, the relevance of ‘deemed export’ under the GST laws is limited to the grant of refund of taxes on supply of goods as ‘deemed export’.
> Interestingly, there is no section that authorizes deemed exports to enjoy zero rated benefit except inclusion of deemed exports within the machinery provisions for claiming refund under section 54 read with rule 89.
> Rule 89 of CGST Rules is relevant for claiming refund in respect of deemed exports. This rule prescribes forms & procedures for claiming refund in case of supplies made to a special economic zone.
> Second proviso to Rule 89(1) says that “provided also that in respect of supplies regarded as deemed exports, the application shall be filled by recipient of deemed export supplies”.
> Documents Required For Refund Under Deemed Export-
1. Taxable Person.
2. Local Authority, Other Public Body or Association.
3. Authority responsible for collecting VAT, Sales Tax, State Excise Duty,Central Excise Duty or Customs Duty.
4. Authority appointed under Income Tax
5. Banking Company
6. State Electricity Board
7. Registrar or Sub-Registrar of Registration Act, 1908
8. Registrar of Companies
9. Registering authority of Motor Vehicles
11. Recognised Stock Exchange
12. Depository of Shares
13. Officer of Reserve Bank of India
14. Goods & Service Tax Network
15. Person to whom Unique Identity Number (UIN) is granted.
16. Any other specified person on recommendation of the Council.
Implications of non-compliance
1. If the details filed are defective:
2. If no return is filed:
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