Question10:

We have to understand that what is tax liability in both unit as per below our query.
- We transfer Raw Material from DTA Unit to EOU Unit? If yes then which Tax we have to paid. (Same GST Number)
- We transfer Finished Goods from DTA Unit to EOU Unit. If yes then which Tax we have to paid. (Same GST Number)
- We transfer Raw Material from EOU Unit to DTA Unit. If yes then which Tax we have to paid. (Same GST Number)
- We transfer Finish Goods from EOU Unit to DTA Unit. If yes then which Tax we have to paid. (Same GST Number)
- In the case of DTA sales in EOU unit, we have charge BCD (50% of custom duty) + IGST in Invoice or only charge IGST and we have to paid BCD separately. In which code we have paid BCD amount in EOU Unit. It is possible in online Tax payment? If yes then which code.
- In EOU Unit, we dispatch to Merchant Exporter, which in same state then which Tax applicable (IGST or CGST and SGST) and what will be Tax Rate.
- We claim EXPORT Rebate claim in 100% EOU Unit.

Answer:

(A) In case of supply of goods from DTA to EOU, the procedure is as under; The concept of 100% EOU under GST has been borrowed from Foreign Trade Policy. As per the provisions of Section 147 read with Notification No. 48/2017-CT dated 18.10.2017 supply of goods by a registered person to Export Oriented Unit has been notified as deemed export. Supply of deemed exports has to be made invariably on payment of IGST at applicable rate according to the classification of goods. There is no distinction whether both the units are registered under same GST number. In cases of deemed exports, procedure laid under LUT or under Bond is not applicable as Section 16 of IGST Act, 2017 prescribes these procedures in case of exports either out of India or to SEZ by a DTA unit. procedure of CT-1/CT-3 available under erstwhile regime has been done away with under GST regime. After the goods have been supplied to EOU, necessary acknowledgement is to be obtained from the designated officer of EOU acknowledging receipt of goods in EOU which will be treated as proof of deemed export. There after refund of IGST paid can be claimed by either the supplier unit of the recipient EOU unit as mutually agreed between them. In case supplier unit is claiming refund then recipient EOU unit needs to give two undertakings as under;
(i) that he has not availed ITC on supplies received by him.
(ii) that he shall not claim refund in respect of such supplies and the supplier may claim the refund. refund of tax paid in case of deemed exports is available under the provisions of Section 54 of CGST Act, 2017 read with Rule 89 of CGST Rules, 2917 which has been amended suitably to accommodate refunds relating deemed exports.Whether inputs or finished goods are supplies to EOU, the procedure remains the same.

(B) In case when goods are supplied by EOU to DTA, the procedure is as under; In case the EOU unit is unable for valid reasons to utilize the goods, then the same will be allowed to sell obsolete/surplus/unutilized goods only, imported into DTA on payment of duty on the value at the time of import/procurement and at rates in force on the date of payment of such duty. The permission for such DTA sale is given by the jurisdictional Assistant Commissioner /Deputy Commissioner of Customs/ Central Excise as the case may be. Likewise, obsolete/surplus capital goods and spares can either be exported or disposed of in the DTA on payment of applicable duties. The benefit of depreciation, as applicable, is allowed in such cases. Duty is not charged if the goods are destroyed with the permission of Customs. IGST is also payable on deemed import of goods from EOU to DTA at applicable rate prescribed for the goods Procedure for exports through merchant exporter is available in case of DTA unit only. 100% EOU is registered only to make exports of his inward supplies by himself and not through merchant exporter. IMPORTANT NOTE
WE have given our reply considering the provision of foreign trade policy there will be conflict of practical application of law because you have to charge GST with in the same number may be portal of GSTN create problem and not permit the same this can be answered only when the portal will start functioning in full and all the returns are start filing on it. So we will suggest you to not take any risk and take separate registration of both the units as different vertical This is the right rout  (Reply dt. 26/11/2017)