Deemed Exports refers to those transactions in which goods supplied do not leave country and payment for such supplies is received either in Indian rupees or in free foreign exchange. Following are supplies covered under Deemed Exports:
Supply By Manufacturer:
- Supply of goods against Advance Authorisation/Advance Authorisation for annual requirement/DFIA.
- Supply of goods to EOU/STP/EHTP/BTP.
- Supply of capital goods against EPCG Authorisation.
- Supply of marine freight containers by 100%EOU.Provided said containers are exported out of India with in 6 months or such further period as permitted by customs.
Supply By Main /Sub Contractor (S):-
- Supply of goods to project financed by multilateral or bilateral Agencies/funds notified by DEA, MOF where legal agreements provide for tender evaluation without including customs duty
- Supply of goods to projects financed by multilateral or bilateral agencies/funds as notified by Department of Economic Affairs, Ministry of Finance, where legal agreements provide for tender evaluation without including customs duty;
- Supply and installation of goods and equipment to projects financed by multilateral or bilateral agreements/funds as notified by Department of Economic Affairs for which bids have been invited and evaluated on the basis of Delivered Duty Paid prices for goods manufactured abroad;
- Supply of goods to any project or for any purpose in respect of which the Ministry of Finance, by Notification No. 12/2012-Customs, dated 17.3.2012 as amended from time to time, permits import of such goods at zero customs duty subject to conditions specified in the said Notification;
- Supply of goods required for setting up of any mega power of project subject to the condition that such mega power project conforms to the threshold generation capacity specified in the above said Notification;
- Supply of goods to UN or International Organizations for their official use or supplied to the Projects financed by the said organizations approved by Government of India;
- Supply of goods to nuclear power projects
Benefits for Deemed Exports
The following are the benefits available to deemed exporters:
- Advance Authorization/Advance Authorization for annual requirement/DFIA;
- Deemed export drawback;
- Refund of terminal excise duty (TED), if exemption is not available.
Deemed Exports under GST
“Deemed Exports” refers to supplies of goods manufactured in India (and not services) which are notified as deemed exports under Section 147 of the CGST/SGST Act, 2017.
The following categories of supply of goods has been declared as Deemed Exports: –
1. Supply of goods by a registered person against Advance Authorisation
2. Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation
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.
How We Assist
We may assist you:-
- To Identify and check eligibility to get the benefits available for deemed Exports.
- In documentation, preparation of application, Coordination with Concerned Authority in order to get refund of Terminal excise Duty/Advance Authorization/Drawback.
- Advisory on the benefits available for Deemed exports.
