Chapter XXI - Miscellaneous
Section 147
Section 147: Deemed exports
Certain India-manufactured goods supplied within India can be notified as deemed exports despite not physically leaving the country.
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Need advice on Section 147?
This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
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.
Key takeaways
Goods remain in India
The statutory definition concerns supplies of goods that do not leave India.
Indian manufacture and payment
The goods must be manufactured in India, and payment may be in rupees or convertible foreign exchange.
Notification gate
Only notified categories qualify; the Act’s enabling text is not itself a list of all covered supplies.
Goods remain in India
The statutory definition concerns supplies of goods that do not leave India.
Indian manufacture and payment
The goods must be manufactured in India, and payment may be in rupees or convertible foreign exchange.
Notification gate
Only notified categories qualify; the Act’s enabling text is not itself a list of all covered supplies.
Practical checklist
Do
- Find the current deemed-export notification for the supply.
- Verify domestic manufacture and movement.
- Preserve payment and supply documentation.
Frequently asked questions
Is every domestic supply with foreign-currency payment a deemed export?
No. Section 147 requires Government notification and the other statutory conditions.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026