Did You Know the Eligibility of Deemed Products??

Deemed Exports means goods manufactured in India and transported locally i.e., they do not leave India.  In this transaction the supplier receives the payment either in Indian Rupees or freely convertible currency.

Goods classified as Deemed Export may not ship out of the country.

Eligibility:

i. Only goods supplied qualify as Deemed Exports,
ii. Manufacture / production of the goods must take place in India,
iii. Goods should not be transported outside India,
iv. Goods must be notified by the Central Govt. as deemed exports under Section 147 of CGST Act,
v. The goods supplied as Deemed Export cannot be processed under Letter of Undertaking or a bond,
vi. GST levied on the goods should be paid at the time of supply.

Supply of goods to the following also is treated as Deemed Export :

i. If the goods are supplied against Advance authorization,
ii. If a person registered under GST supplies goods to an EOU / EHTP / STP / BTP,
iii. Transaction made against DFIA,
iv. Capital Goods supplied against EPCG authorization and
v. Goods supplied to UN projects as well as nuclear power projects.

Benefits:

i. The supplier receives an Advance Authorization for intermediate supply,
ii. Deemed Exports are exempted from the terminal excise duty, or the duty is fully refundable,
iii. Supplies against ARO or back-to-back L/C the supplier can avail Deemed Export Drawback, refund of TED.