Deemed exports under GST – An Analysis

• December 9, 2020
• CA Chandan Agarwal's Office

Introduction:-

Deemed exports, as the name specifies, are those transactions which are considered as exports but not actually exports. This explanation might have confused you. So, let me put it in this way. First of all, we’ll understand what are exports? Supply of goods to a place outside India and repatriating that proceeds in foreign exchange to India, is called as export of goods. Deemed export is completely opposite to this. Here, the supply of goods will be in India and proceeds will be received in rupees itself, but the transaction is deemed to be an export i.e., Deemed Export. So, why such concept? How to claim benefits of Deemed Exports? Already exports are dumped up with huge benefits, are all these benefits applicable to this deemed exports? We’ll see the answers to all these questions in this article.

As per section 147 of Central Goods and Service Tax 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”

Read more on: https://taxguru.in/goods-and-service-tax/deemed-exports-gst-analysis.html