Dear Members,

To resolve certain difficulties being faced by exporters post-GST, it was decided by the government that supplies of goods by a registered person to EOUs etc. would be treated as deemed exports and refund of tax paid on such supplies can be claimed either by the recipient or supplier of such supplies.

Accordingly, Notification No. 48/2017-Central Tax dated 18.10.2017 has been issued to treat such supplies to EOU/ EHTP/STP/BTP units as deemed exports.  Further, rule 89 of the CGST Rules, 2017 (hereinafter referred to as ‘the  Rules’) has been amended vide Notification No. 47/2017- Central Tax dated 18.10.2017 to allow either the recipient or supplier of such supplies to claim refund of tax paid thereon.

Now,  CBEC/ GST Policy wing has issued Circular No. 14/14 /2017 – GST   dated 6th  November, 2017 regarding  procedure and safeguards   for supplies to EOU / EHTP / STP / BTP  which are as follows:–

• The recipient EOU / EHTP / STP / BTP unit shall give prior intimation in a prescribed pro-forma in "Form–A" (appended with the circular) bearing a running serial number containing the goods to be procured, as pre-approved by the Development Commissioner and the details of the supplier before such deemed export supplies are made. The said intimation shall be given to –
•  

(a) the registered supplier;
(b) the jurisdictional GST officer in charge of such registered supplier; and
(c) its jurisdictional GST officer.

EOU / EHTP / STP / BTP unit.

(a) the registered supplier;
(b) the jurisdictional GST officer in charge of such registered supplier; and
(c) its jurisdictional GST officer.

• The recipient EOU / EHTP / STP / BTP unit shall maintain records of such deemed

export supplies in digital form, based upon data elements contained in "Form-B" (appended with the circular).

The software for maintenance of digital records shall incorporate the feature of audit trail. While the data elements contained in the Form-B are mandatory, the recipient units will be free to add or continue with any additional data fields, as per their commercial requirements.

All recipient units are required to enter data accurately and immediately upon the goods being received in, utilized by or removed from the said unit. The digital records should be kept updated, accurate, complete and available at the said unit at all times for  verification by the proper officer, whenever required. A digital copy of Form – B containing transactions for the month, shall be provided to the jurisdictional GST officer, each month (by the 10th of month) in a CD or Pen drive, as convenient to the said unit.

The above procedure and safeguards are in addition to the terms and conditions to be adhered to by a EOU / EHTP / STP / BTP unit in terms of the Foreign Trade Policy, 2015-20 and the duty exemption notification being availed by such unit.

Members are requested to take note of these procedures and do the needful accordingly. Issues, if any, may be highlighted on Deepak.gupta@chemexcil.gov.in & balani.lic@chemexcil.gov.in .   The original circular is available for download using below link-

http://www.cbec.gov.in/resources//htdocs-cbec/gst/circularno-14-gst.pdf

Thanking you,

Yours faithfully,

(S G BHARADI)
EXECUTIVE DIRECTOR
CHEMEXCIL