This circular provides the prescribed procedure and safeguards for treating supplies of goods from the Domestic Tariff Area (DTA) to EOU, EHTP, STP and BTP units as deemed exports under section 147 of the CGST Act, following decisions of the GST Council to address post-GST difficulties faced by exporters.

It clarifies that supplies made by a registered supplier to such units are treated as deemed exports, and refund of GST paid on these supplies may be claimed either by the supplier or the recipient unit, in accordance with the amended CGST Rules and relevant notifications.

The circular lays down a step-by-step procedure. Prior to procurement, the recipient unit is required to issue a prior intimation in Form A to the supplier and the jurisdictional GST officers, detailing the goods approved by the Development Commissioner. Supplies are to be made under a tax invoice, which must be endorsed by the recipient unit and shared with the supplier and concerned tax authorities as proof of deemed export.

It further mandates that recipient units must maintain digital records in Form B for receipt, use and removal of such goods, with proper audit trail. Monthly transaction details are required to be furnished to the jurisdictional GST officer. These procedures are in addition to compliance requirements under the Foreign Trade Policy and applicable duty exemption notifications, and are intended to ensure transparency and prevent misuse of deemed export benefits.