Dear All,
DTA unit will raise the invoice on foreign Customer in USD & ship the goods to an EOU in India. NO export of goods. GST is leviable.
Is the transaction qualify for GST refund under deemed export.
Please note the EOU located in India will not make any payment to the supplier as the goods are only shipped based on foreign supplier to EOU company.
Please confirm whether the GST refund under Deemed Export is eligible.
No GST refund as deemed export when foreign buyer pays, not EOU recipient, under section 147 CGST A domestic tariff area supplier invoices a foreign customer in USD and ships goods to an Indian EOU for further processing and export, with no payment made by the EOU. The query concerns eligibility for GST refund as 'deemed export.' The response explains that under section 147 of the CGST Act and relevant notifications, deemed export requires that goods do not leave India and that payment be made by the Indian recipient (e.g., the EOU). As the foreign customer, not the EOU, is the recipient making payment, the conditions for deemed export are not met, so no GST refund is available. (AI Summary)
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