SUPPLY TO EOU UNIT

[SURYAKANT MITHBAVKAR]

While supply to EOU as per procedure laid down in GST council meeting held on 6th Nov-2017.

Please advice whether we have to clear Goods without payment of GST.

[KASTURI SETHI]

EXTRACT

Circular No. 8/8/2017-GST, dated 4-10-2017 F. No. 349/74/2017-GST (Pt.) Vol. II

(j) Transactions with EOUs : Zero rating is not applicable to supplies to EOUs and there is no special dispensation for them under GST regime. Therefore, supplies to EOUs are taxable like any other taxable supplies. EOUs, to the extent of exports, are eligible for zero rating like any other exporter.

Further we can hope in the next meeting to be held on 9 & 10.11.17

[Nash Industries I Pvt Ltd]

GST is payable. The refund of the output GST can either be claimed by recipient or the supplier if the recipient EOU gives a declaration as per notification 47 & 48/2017 both dated 13.10.2017 read with Circular 14/2017-GST dated 06.11.2017.

Regards

S.Ramaswamy

AI Summary

Zero-rating in supplies to EOUs: supplies are taxable; refunds available if recipient furnishes prescribed declaration. Supply to Export Oriented Units are taxable under GST and do not receive automatic zero-rating; EOUs are eligible for zero-rating only for exports. Refund of output GST paid on supplies to EOUs can be claimed by either the recipient or the supplier if the recipient furnishes the prescribed declaration under the relevant notifications and circulars.