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Section 147 • Statement 5B

GST Refund: Deemed Exports

Supplies to EOUs and against Advance Authorisation are treated as exports even though goods never leave India — and the tax paid is refundable.

What This Refund Covers

Certain domestic supplies are notified under Section 147 as "deemed exports" — most commonly, supplies to Export Oriented Units (EOUs), or against an Advance Authorisation or EPCG licence. Unlike a real export, the goods never leave India and there's no requirement to receive payment in foreign exchange — but GST is still charged on the invoice at the time of supply.

Because the recipient uses these goods for further export production, the tax charged is refundable — but it can only be claimed once. Either the supplier claims it (with the recipient's written undertaking that they haven't availed ITC and won't also claim), or the recipient claims it directly. Both parties claiming on the same invoice is a guaranteed rejection.

1 of 2Only supplier OR recipient can claim
Statement 5BAnnexure filed with RFD-01
2 YrsFrom date the relevant return is filed

Be Prepared

Documents Required

Statement 5B

The deemed-export-specific annexure filed with Form RFD-01.

Tax Invoice

Showing GST charged on the deemed export supply, tying back to the notified category.

Advance Authorisation / EPCG / EOU Proof

Evidence the supply qualifies — a copy of the recipient's Advance Authorisation, EPCG licence, or EOU status.

Recipient's Undertaking (If Supplier Claims)

A signed declaration that the recipient hasn't availed ITC on the supply and won't separately claim the refund.

Officer Endorsement

Certification from the jurisdictional/specified officer confirming receipt of goods, where applicable.

CA Certificate / Self-Declaration

Rule 89(2) declaration on unjust enrichment — self-declaration under ₹2 lakh, CA/CMA certificate above it.

Avoid the Common Traps

Why This Claim Gets Rejected

Double Claim

Both supplier and recipient filing for refund on the same invoice — the single most common reason for rejection here.

Missing Undertaking

Supplier claims without attaching the recipient's declaration that ITC wasn't availed.

Supply Not Properly Notified

The transaction doesn't actually fall within a category notified as a deemed export under Section 147.

FAQs

Can both the supplier and buyer claim a deemed export refund on the same supply?
No — only one party can claim it. If the supplier claims, the recipient must furnish an undertaking that they haven't availed input tax credit on that supply and won't claim the refund themselves.
Is a deemed export the same as a normal export?
No. In a deemed export, the goods don't leave India and payment doesn't have to be received in foreign exchange. It's tax that's still charged and later refunded, unlike a normal zero-rated export where no tax is charged upfront (under LUT) or the tax is refunded via the automatic shipping-bill route.
What supplies qualify as deemed exports?
Common examples notified under Section 147 include supplies to Export Oriented Units (EOUs), supplies against Advance Authorisation or EPCG licences, and supply of capital goods against EPCG authorisation.

Supplying to an EOU or Against Advance Authorisation?

Tell us on WhatsApp who should claim — supplier or recipient — and we'll handle the filing correctly the first time.

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