Deemed Exports.

Section 147

The Government may, on the recommendations of the Council, notify certain supplies of goods as deemed exports, where goods supplied do not leave India, and payment for such supplies is received either in Indian rupees or in convertible foreign exchange, if such goods are manufactured in India.

AI Explanation

The government, based on the recommendations of the Council, has the authority to identify and declare specific supplies of goods as deemed exports. Now, what exactly are deemed exports? These are situations where the goods supplied do not physically leave India. Instead, they remain within the country. Moreover, for these supplies to qualify as deemed exports, the payment received must be either in Indian rupees or in convertible foreign exchange.

Criteria for Deemed Exports

To be classified as deemed exports, the goods in question must also be manufactured in India. This adds a domestic production aspect to the definition. In essence, these are scenarios where goods are supplied within the boundaries of India, contributing to the nation's economy.

In conclusion, Section 147 provides the government with the flexibility to officially recognize certain supplies as deemed exports, emphasizing the importance of the origin of goods and the currency of payment.