Section 147 of The Central Goods and Services Tax Act, 2017
The Government may, on the recommendations of the Council, notify certain supplies of goods 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, if such goods are manufactured in India.
Summary
- This provision allows the government to treat certain domestic sales of goods exactly like exports.
- To qualify as deemed exports, the goods must be made in India and never actually leave the country.
- The payment for these specific supplies must be received in Indian rupees or convertible foreign currency.
- The government only makes this rule based on recommendations from the GST Council.
Practical examples
FAQ
1. What are deemed exports under Section 147 of the Central Goods and Services Tax Act, 2017?
Under Section 147 of the Central Goods and Services Tax Act, deemed exports are specific supplies of goods that are manufactured in India and do not leave the country, but are treated as exports.
2. Can imported goods be treated as deemed exports under Section 147 of the CGST Act?
No, Section 147 of the Central Goods and Services Tax Act, 2017 requires that the goods must be manufactured in India to qualify.
3. How must payment be received for deemed exports under Section 147 of the 2017 tax law?
According to Section 147 of the Central Goods and Services Tax Act, payment must be received in Indian rupees or in convertible foreign exchange.
Test yourself
Q1.Which condition must be met for goods to be notified as deemed exports under Section 147 of The Central Goods and Services Tax Act, 2017?
Q2.What forms of payment are acceptable for deemed exports under Section 147 of the CGST Act?
Q3.Who has the authority to recommend which goods qualify as deemed exports under Section 147 of The Central Goods and Services Tax Act, 2017?
Q4.Under Section 147 of the 2017 tax law, what happens to the physical location of the goods classified as deemed exports?