The transactions in which goods supplied do not leave the country and payment for the same is either received in INR or in free foreign exchange are categorized under deemed exports.

Supply of goods under following categories by a manufacturer and by main/ sub-contractors shall be regarded as ‘deemed exports’:-

• Supply of goods against Advance Authorization/ DFIA/capital goods against EPCG Authorization and to EOU.
• Supply to Project financed by multilateral/ bilateral agencies, ICB, UN Projects, Nuclear Power Projects, etc.

Deemed exports shall be eligible for any / all of following benefits in respect of manufacture and supply of goods, qualifying as deemed exports, subject to terms and conditions as given in HBP and ANF-7A: 

1. Advance Authorisation / Advance Authorisation for annual requirement / DFIA.
2. Deemed Export Drawback.
3. Exemption from IGST till 31.03.2022
4. Refund of terminal excise duty for excisable goods mentioned in Schedule 4 of Central Excise Act 1944 provided the supply is eligible under that category of deemed exports and there is no exemption.

Supplier/ Recipient may file the application in ANF7A to the concerned RA. In case of supply of goods to EOU, claim is required to be filed to the concerned Development commissioner, if claimed by EOU.