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 andSUN]

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

Supplies to Export Oriented Units in Same State Subject to CGST and SGST, Not Zero-Rated; Refer Section 147 CGST Act. A discussion on the Goods and Services Tax (GST) treatment for supplies to Export Oriented Units (EOUs) within the same state. Participants debated whether such supplies should be treated as deemed exports and whether Central GST (CGST) and State GST (SGST) or Integrated GST (IGST) should be applied. The consensus was that supplies to EOUs within the same state are not zero-rated and should be charged CGST and SGST, as they are considered intra-state transactions. However, EOUs can claim GST credits or refunds. The discussion referenced Section 147 of the CGST Act.