Deemed Export - Supply to EOU

[Kaustubh Karandikar]

If supply is to an EOU within the same state, CGST + SGST is to be charged or IGST being Deemed Export?

[DR.MARIAPPAN GOVINDARAJAN]

In my view it is deemed export.

[KASTURI SETHI]

Yes. It is deemed export. Read Section 147 of CGST Act and also definition of ' deemed export'.

[Kaustubh Karandikar]

My query is whether CGST + SGST is to be charged or IGST?

[Alkesh Jani]

Dear Sir,

In this case, my point of view is that, supplies to EOU unit is not zero rated supplies, if the EOU is within the same state, CGST+SGST is to be levied. Here it is important to note that only SEZ unit or Developer is mentioned as inter-state and also excluded from Intra-state, as per the provisions of IGST Act,2017.

Any different view, is highly solicited.

Thanks,

Regards,

[Ganeshan Kalyani]

Deemed Exports.

147. The Government may, on the recommendations of the Council, notify certain supplies of goods as deemed exports, where goods supplied do not leave India, and payment for such supplies is received either in Indian rupees or in convertible foreign exchange, if such goods are manufactured in India.

[KASTURI SETHI]

Deemed exports are not at par with regular exports. I support the views of Sh.Alkesh Jani, an expert.

[Nash Industries I Pvt Ltd]

Any supplies to EOU attracts GST. If Inter state - IGST and if intra State - CGST+SGST.

The customer EOU can avail the Credit of GST and utilise it for payment of outward sales or claim refund of the GST paid on inputs under rule 89 (4) or he can ask the supplier to claim refund if he has neither availed the credit or claimed refund.

We do supply to EOU within the state and we charge CGST+SGST on the invoice. The customer EOU avails the credit.

Regards

S.Ramaswamy

[YAGAY and SUN]

Supply to EOUs from DTA attract GST. Depending on Interstate or Intrastate supply the GST would be determined accordingly. Now either supplier or the recipient can file on line refund of GST on issuance of a declaration to either party.

AI Summary

Deemed export treatment for supplies to EOU: intra state attracts CGST and SGST while inter state attracts IGST.
Supplies from the domestic tariff area to an EOU raise debate on deemed export status, but operationally tax treatment follows place of supply: intrastate supplies are subject to CGST and SGST and interstate supplies to IGST. Recipients (EOUs) can avail input tax credit or pursue GST refund for taxes paid on inputs, and suppliers may claim refunds if the recipient does not claim credit.