deemed exports :
“deemed exports” means such supplies of goods as may be notified under section 147;
Deemed exports are those supplies of goods that are notified as ‘deemed exports’ where:
(a) The goods supplied do not leave India;
(b) Payment for such supplies is received in Indian Rupees/ Convertible Foreign Exchange;and
(c) Such goods are manufactured in India.
The definition of ‘deemed exports’ under this Act is in line with the definition of ‘Deemed Exports’ under Chapter 07.01 of the Foreign Trade Policy 2015-20. ‘Deemed Export’ under the FTP 2015-20 covers supply of goods to EOU/STP/EHTP/BTP, supply of goods under advance authorisation etc. and hence provides for refund, drawback and advance authorisation t o the supplier of goods. On the other hand, the relevance of ‘deemed export’ under the GST laws is limited to the grant of refund of taxes on supply of goods as ‘deemed export’.
Therefore, a provision has been made under the Act to notify certain transactions as ‘deemed export’ to avoid situations where the persons might claim refund of taxes on ‘deemed export’ defined in the FTP 2015-20. While deemed exports may be notified under section 147, the nature of benefit available in respect of deemed exports requires a provision in the Act conferring such entitlement. Section 54 would be the machinery provision for disposal of refund applications. And deemed exports will not come within section 54(3).