Question29:
We are manufacturer of Aluminum Extruded products and supply the goods to
Domestic market as well as to Export and SEZ customers and also 100% EOU
customers.
Can we clear the goods to 100% EOU customers on zero rated GST under
notification No. 48/2017-CT dated 18.10.2017 and 49/2017-CT dated 18.10.2017 as
deemed export.
Also can we supply goods to an export unit on Zero rated GST as Deemed
Answer:
Supplies to SEZ are zero rated as per Section 16 of IGST Act, 2017. You may
supply your goods to SEZ either under LUT of on on payment of IGST. Supplies to
100% EOUs are on payment of applicable GST only .It is covered under deemed
export Under section 147 of CGST act So the provisions are different then those
for physical export given in Section 16 of IGST Act. You may claim refund of the
tax paid on supplies made to EOU. Refund of such tax paid can be claimed either
by the deemed exporter or the recipient of such supplies in EOU. Notification
No. 49/2017-Central Tax dated 18.10.2017 prescribes certain evidences which a
deemed exporter is required to produce for claiming refund of integrated tax
paid on deemed exports. Such evidences are given below;
1. Acknowledgment by the jurisdictional Tax officer of the Advance
Authorisation holder or Export Promotion Capital Goods Authorisation holder,
which ever may be applicable, to the effect that;
(a) the said deemed export supplies have been received by the said Advance
Authorisation or Export Promotion Capital Goods Authorisation holder, or
(b) a copy of the tax invoice under which such supplies have been made by the
supplier, duly signed by the recipient Export Oriented Unit that said deemed
export supplies have been received by it.
2. An undertaking by the recipient of deemed export supplies that no input
tax credit on such supplies has been availed of by him.
3. An undertaking by the recipient of deemed export supplies that he shall
not claim the refund in respect of such supplies and the supplier may claim the
refund. . (Reply Dt. 10/01/2018)