DGFT Should Relook at Provisions for Deemed Exports from DTA to EoU of Same Entity

We have a domestic tariff area (DTA) unit and an export-oriented unit (EoU) within the same state under the same goods and services tax identification number (GSTIN). We want to send the goods manufactured in the DTA unit to the EoU for use as an input in the goods manufactured by the EoU. Can we get deemed export drawback benefits on such supplies?

- TNC Rajagopalan

Paragraph 7.01(i) of the Foreign Trade Policy (FTP) says ‘deemed exports’ for this FTP refer to those transactions in which goods supplied do not leave the country, and payment for such supplies is received either in Indian rupees or in free foreign exchange. Supplies of goods as specified in Paragraph 7.02 are treated as ‘deemed exports’ provided goods are manufactured in India. Now, supply of goods to EoU is covered under Para 7.02A (b) of the FTP. The documentation prescribed at form ANF-7A requires you to submit a copy of Form A prescribed under CBIC Circular no. 14/14/2017-GST dated November 6, 2017, along with a copy of tax invoice duly endorsed by the recipient and e-BRC for the payment received by the DTA. Now, you cannot issue a tax invoice because both your units are in