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export and deemed export

NAGA (ACCOUNTANT) (519 Points)

14 May 2018

what is the difference between export and deemed export.

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6 Replies

CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 14 May 2018

Deemed Export-Under section 147, the Government may, on the recommendations of the Council, notify certain supplies of goods manufactured in India as deemed exports, where goods supplied do not leave India, and payment for such supplies is received either in Indian rupees or in convertible foreign exchange.
Export-Export means sending goods outside india on payment of IGST or against bond or LOU.

NAGA (ACCOUNTANT) (519 Points)
Replied 14 May 2018

Sir, pls tell me about merchant exporter

CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 14 May 2018

Merchant exporter do not have own any manufacturing facilities but they used to buy goods from the manufacturer in domestic Tariff Area (DTA) to execute exports sales with overseas customers.

NAGA (ACCOUNTANT) (519 Points)
Replied 14 May 2018

k sir,
we are supplied to merchant exporter in igst. now where i can Entered this sale in gstr 1, and can i tick in deemed export option .
pls.

CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 14 May 2018

Entered in Gstr-1 as the transaction between a manufacturer (‘supplier’) and a merchant exporter (‘recipient) is in the nature of supply and same is liable to GST as any other normal taxable supply.
it is not a deemed export.