in terms of the Notification no. 48/2017,Central Tax. dated 18/10/2017, the supplies to EOU's would be treated as deemed export. A procedure has also been prescribed separately that the recipient shall have to submit intimation in Form 'A' to the jurisdictional GST authorities and copies to be sent to the jurisdictional GST authority of supplier and to supplier. The refund of GST can be claimed either by supplier or recipient on fulfilling the requirements.

The provision seems to be similar to the earlier provision like CT-3 certificate etc. However, in GST regime tax is necessarily to be paid and later refund could be claimed.
This current provision would increase unnecessary compliance which is futile and unwarranted. Instead, it could be better that the Form 'A' could could be treated similar to earlier CT-3 and the supplies to EOU's should be ZERO rated supplies provided the supplier submits the proof of delivery to recipient by way of submitting the copy of Invoice duly endorsed by the GST authorities of recipient Unit.

Bipin Pradhan

13/11/2017