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.

AI Summary

Supplies to Export Oriented Units (EOUs) are taxable under GST; zero-rating applies only to exports. Refunds possible with declaration. A query was raised regarding whether goods supplied to Export Oriented Units (EOUs) should be cleared without GST payment. Respondents clarified that zero-rating does not apply to supplies to EOUs under the current GST regime, making such supplies taxable. However, EOUs are eligible for zero-rating on exports. It was noted that GST is payable on supplies to EOUs, but a refund of the output GST can be claimed by either the recipient or the supplier if a declaration is provided, as per relevant notifications and circulars.