Deemed exports and merchant-export supplies

Deemed exports (section 147)

Notified supplies where goods don't leave India but are treated like exports:

• Supplies to Export Oriented Units (EOU/EHTP/STP/BTP).
• Supplies against an Advance Authorisation.
• Capital goods against an EPCG authorisation.
• Supply of gold by a bank or PSU against an Advance Authorisation.

Tax: GST is charged normally (the supplier pays it). Then either the recipient or the supplier can claim a refund of that tax (RFD-01), with the required declarations. Report as DEXP in GSTR-1 / e-invoice.

Supplies to merchant exporters at 0.1%

A manufacturer or supplier can sell goods to a registered merchant exporter at a concessional 0.1% GST, provided the exporter exports them within 90 days of the invoice and meets the notified conditions (registered with an export promotion council, goods moved directly to the port or a registered warehouse, and so on).

Sources

• Central Goods and Services Tax Act, 2017 (as amended)