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Govt has recently issued notifications relating to deemed export and other matters as under:

1. What are deemed exports?

Deemed exports refer to supplies wherein the goods do not actually leave India but the supplies are designated as exports.

2. What kinds of supplies are designated as deemed exports?

 Supply of goods by a registered person against Advance Authorisation.

 Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation.

 Supply of goods by a registered person to Export Oriented Unit;

 Supply of gold by a bank or Public‐Sector Undertaking specified in the notification No. 50/2017‐Customs, dated the 30th June 2017 (as amended) against Advance Authorisation

3. What are the benefits provided for such deemed exports?

Refunds are allowed of the GST paid on deemed exports. Typically, such refund is to be filed in RFD01 by the recipient of the supply.

However, supplier can also file the refund provided:

recipient does not avail of input tax credit on such supplies; and

recipient furnishes an undertaking to the effect that the supplier may claim the refund.

4..Supplies qualifying as deemed export

 What are the prescribed documents / evidences required for filing the refund claim by a supplier?

For Supplies against Advance Authorisation and EPCG Scheme:

Acknowledgment from jurisdictional officer of Advance Authorisation holder or EPCG holder that deemed export supplies have been received.

For Supplies against EOU Scheme: Duly endorsed tax invoice (under which supply was made) by EOU recipient that supplies have been received;

For All deemed export supplies

 Undertaking from recipient that no input tax credit on such supplies have been availed by it;

 Undertaking from recipient that it will not seek refund in respect of such supplies and the supplier may claim the refund

5.What are kind of exemption has been granted?

Outright exemption has been granted from levy of CGST, UGSTand IGST.

What the conditions attached?

 Such a supply should be under a programme duly approved by the Central Government or any State Government;

 Supplier of such foods preparations produces a certificate obtained from deputy secretary of CG/SG/UT to the effect that preparations have been distributed free to EWS section, within 5 months (such extended time) from the date of such supply

6.Invoicing for Movement of Goods on Approval Basis

Government has clarified that registered persons can take the challan route to transport the goods within the State or outside the State in relation to supply of goods on approval basis. It is clarified that person will first issue the challan and as soon as the supply if fructified, it will issue a tax invoice charging appropriate GST.

It may be note that the clarification relates to goods on approval basis. Thus, the fact pattern needs to be analysed carefully before taking the benefit of this Circular.

Circular No. 10/10/2017‐GST Dated 18.10.2017