Clarification on Deemed Export Status for EOU-to-EOU Supplies under GST

[Dashrath Walkoli]

sir

I am writing to seek clarification on the applicability of Notification No. 48/2017-Central Tax, dated 18.10.2017, and Circular No. 14/14/2017-GST, dated 06.11.2017, specifically concerning the treatment of a supply of goods from one Export Oriented Unit (EOU) to another EOU.

Notification No. 48/2017-Central Tax notifies 'supply of goods by a registered person to an EOU' as a deemed export. Given that an EOU is also a 'registered person' under the GST Act, a literal interpretation suggests that a supply from one EOU (as a supplier) to another EOU (as a recipient) should qualify as a deemed export.

The deemed export provision under Section 147 and Notification No. 48/2017-Central Tax was created for a very specific purpose: to provide a level playing field for domestic suppliers.

However, the procedural framework outlined in Circular No. 14/14/2017-GST, particularly the requirement for prior intimation in Form A and the endorsement of the invoice, seems to be primarily designed for DTA-to-EOU supplies, creating an ambiguity. This ambiguity leads to practical difficulties in determining the eligibility for a refund of GST paid on such supplies, as the refund mechanism under the deemed export provisions may not be applicable for EOU-to-EOU transactions.

I kindly request your official clarification on the following point:

Does a supply of goods by a registered EOU to another registered EOU qualify as a 'deemed export' under Notification No. 48/2017-Central Tax, and whether refund of gst can be claimed?

AI Summary

Whether supplies between EOUs qualify as 'deemed exports' under Notification No. 48/2017 and allow GST refunds A taxpayer asks whether supplies from one EOU to another EOU qualify as 'deemed exports' under Notification No. 48/2017 and thus permit GST refund, noting Circular No. 14/2017's Form A and invoice-endorsement procedures appear aimed at DTA-to-EOU transactions. Forum responses conflict: some state inter-EOU transfers are ordinary taxable supplies requiring GST (with potential reversal of basic customs duty benefits), others assert they are deemed exports eligible for refund and flexible intimation to authorities, while another view denies deemed-export status and refunds. The issue remains legally ambiguous and dependent on interpretation of the notification and circular.