Deemed Exports refer to transactions where goods manufactured in India are supplied to specific categories of buyers (like export-oriented units, projects funded by international agencies, etc.) without actual physical export. Such transactions are treated as exports for the purpose of benefits under GST, customs, and export promotion schemes.
Why Deemed Export Benefits are Important?
- Encourages domestic manufacturing for specific government or international projects.
- Allows suppliers to claim export incentives without actual shipment abroad.
- Boosts business opportunities for Indian manufacturers.
- Supports compliance with export promotion and tax benefit regulations.
Benefits of Deemed Exports
- Claim of duty drawback or refund under export promotion schemes.
- Eligibility for GST refund or input tax credit on supplies treated as exports.
- Access to schemes like EPCG, DFIA, and RoDTEP if applicable.
- Improved competitiveness and cash flow for domestic suppliers.
Eligibility Criteria
- Suppliers with a valid Import Export Code (IEC).
- Supplies made to specified categories like SEZ units, EOUs, projects funded by international agencies, or government-sponsored projects.
- Compliance with GST, customs, and DGFT regulations.
Required Documents
- IEC (Import Export Code).
- Invoice or supply documents to the deemed export buyer.
- Shipping bill or customs documentation if required.
- Certificates issued by appropriate authorities (e.g., SEZ/EOU letters).
- GST registration proof and applicable tax documents.
How to Claim Deemed Export Benefits
- Ensure the buyer qualifies as a deemed export recipient under the scheme.
- Maintain accurate records of supply and invoices.
- Apply for duty drawback, GST refund, or other eligible incentives through the relevant portal.
- Upload supporting documents such as invoices, IEC, and certificates.
- Submit the claim for verification and processing.
- Receive the benefits directly to your bank account once approved.
Key Tips
- Keep all supply and tax documentation accurate and updated.
- Check eligibility of the buyer under deemed export norms before supplying.
- Submit claims within prescribed timelines to avoid rejection.
- Regularly monitor updates from DGFT and GST authorities for changes in deemed export policies.
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