Supply without consideration qualifies as exports

By Vikash Agarwal

Can a deemed supply (supply between related parties without consideration under GST) qualify as exports even if there is no inflow of foreign proceeds?

Attached recent ruling by the Hon’ble Supreme Court discussing the scope of the deeming fiction in the light of the legislature’s purpose of framing the SEZ law may somewhere assist in determining the answer to the above question.

Here is how the Hon’ble SC explains Principles of Reading Up & Down statutory provisions

**Reading Down**

– Interpreting a statute narrowly to limit its scope

– Applied generally when a statute is ambiguous or conflicts with other laws.

– In order to avoid unintended consequences and align with legislative intent.

** Reading Up**

– Interpreting a statute more broadly than its literal language.

– Invoked carefully, maintaining the law’s fundamental character.

– Must align with legislative intent and original context

– Reading up subordinate provisions that contradict primary law is impermissible

-> Balancing literal language and legislature intent is crucial in legal interpretation.