DEEMED EXPORTS
Export of goods, in common parlance, means taking goods outside India. Such supplies are treated as zero-rated supplies under GST. However, the Central Government may notify certain categories of supplies of goods, which would be treated as deemed exports. This means that such supplies shall be treated as exports even if such goods are not taken outside India.

DEEMED EXPORTS DEFINED
 Supply of goods by the registered person against Advance Authorisation (AA) i.e. Supplier must be registered under GST and recipient must be an Advance           Authorisation holder
 Supply of capital goods by the registered person against Export Promotion Capital Goods Authorisation (EPCG)
 Supply of goods by the registered person to Export Oriented Unit (EOU)/ Electronic Hardware Technology Park Unit (EHTP) / Software Technology Park Unit (STP) / Bio-Technology Park Unit (BTP)
 Supply of gold by Bank or Public Sector Undertaking against AA.

TAXABILITY in DEEMED EXPORTS
Deemed export supplies are not zero-rated supplies by default. All deemed export supplies will be subject to GST at the point of supply. Supplies cannot be made under Bond / LUT without payment of tax. Tax should be paid on such supply and then be claimed as refund. Subject to certain conditions, Refund of tax paid can be claimed by either of the following persons: 1. Supplier of goods OR 2. Recipient of goods. Note: The recipient is not eligible to claim the input tax credit (ITC) in case refund of tax paid is being claimed by the supplier.

REFUND BY SUPPLIER OPTION IS VIABLE FOR AUTHORIZATION HOLDER & AUTHORIZATION HOLDER HAVE TO PROVIDE FOLLOWING UNDERTAKING TO SUPPLIER OF MACHINE.

1. Acknowledgement by jurisdiction tax officer of AA or EPCG holder that the said deemed export supplies have been received OR in case of EOU/ EHTP/ STP/ BTP/ Copy of tax invoice signed by the recipient that said deemed export supplies have been received.

2. Undertaking by the recipient that no ITC has been claimed.

3. Undertaking by the recipient that it shall not claim a refund in respect of such supplies. In above case i.e. Refund Claim by Supplier. Supplier will pay tax on his own & then claim refund from department.

In above case i.e. Refund Claim by Supplier. Supplier will pay tax on his own & then claim refund from department