Group Member: -

2023616 Sri
2023625 Mohammad Amaan
2023637 Roshan Kundukulam
2023674 Rishika Palriwal

Deemed Export

Meaning: -
Deemed exports are goods—not services—that are produced in India and transported locally,
meaning they never leave the country. Deemed export basically means that the supplier may
get paid for this deal in convertible foreign currency or Indian Rupees.

Benefits: -
The goods that are eligible for being considered as deemed exports receive the following
benefits:

The supplier receives an Advance License for intermediate supply/ deemed export/DFRC/
DFRC for intermediate supplies/special imprest license.

Deemed exports are exempted from the terminal excise duty or the duty is fully refundable.

The manufacturers are eligible for a Special Import License at the rate of 6 percent of the
Freight On Board (FOB) value.

If the goods have been supplied against an Advance Release Order or Back-to-Back Letter of
Credit, the supplier can avail of the benefits of the Deemed Export Drawback scheme,
Refund of terminal excise duty, and Special Impress License.

Under GST: -
Supplies that are deemed exports are not automatically zero-rated supplies; instead, they must
be treated similarly to exports. As a result, at the point of supply, GST will apply to all
presumed exports. These Supplies cannot be made under Bond or LUT without paying tax, as
well. The recipient or the provider of the goods, however, may request a refund of the tax
paid on the supply. The receiver, however, will not be qualified to request the ITC on the
reimbursement once the supplier has requested it.

Export is the process of distributing commodities (made or manufactured in the nation) on a

global scale. Such a supply of products and services benefits from the benefit of being
classified as zero-rated suppliers since it helps an economy flourish. Although the
commodities do not leave the country's boundaries, there is a certain category of supplies
that, according to the Central Government, are classified as exports. Under the GST, such a
supply of commodities is referred to as a deemed export.

Depending on the Council's recommendations, the Government may declare some shipments
of commodities as considered exports even though they never leave India and are paid for in
either Indian rupees or convertible foreign currency if they are made in India. Assumed
exports are what the CGST Act, 2017's Section 2(39) refers to. According to section 54 of the
CGST Act, this would be pertinent for extending the refund benefit. In everyday speech,
exporting anything involves taking it outside of India. Under GST, these supplies are
regarded as zero-rated supplies. The Central Government, however, has the authority to
announce certain product categories that would be regarded as exports.

This implies that even if the supplies are not exported outside of India, they must still be
classified as exports. According to Section 147 of the CGST/SGST Act of 2017, supply of
products made in India that are designated as considered exports (and do not include services)
are referred to as "Deemed Exports." When goods are supplied and designated as "deemed
exports," the following conditions must be met:

(a) the products supplied do not leave India;

(b) payment for the supplies is made in Indian rupees or convertible foreign currency; and

(c) the goods were produced in India.