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 EOU-to-EOU transfers qualify as 'deemed export' under Notification No. 48/2017 and eligibility for GST refund A taxpayer asked whether supplies from one Export Oriented Unit (EOU) to another qualify as 'deemed export' under Notification No. 48/2017 and whether GST refund is claimable. Forum responses conflict: some authorities and a DGFT notice indicate EOUs are treated like any other registered supplier and inter-unit transfers attract GST (with potential reversal of customs duty exemptions), so deemed-export refund provisions do not apply; others assert such transfers can be treated as deemed exports with possible refunds subject to procedural compliance (Form A/intimation). The prevailing administrative guidance and DGFT direction point toward treating EOU-to-EOU transfers as taxable supplies.