Supply From DTA to SEZ or SEZ to DTA under GST

Section 7 of the IGST Act, 2017: Inter-State Supply

As per Section 7(5)(b) of the IGST Act, 2017 says that Supply of goods or services or both made to or by a Special Economic Zone developer or a Special Economic Zone unit shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce.

According to the above said provisions supply made to or supply made by SEZ unit shall always be treated as inter-state supply.

Section 2(5) of IGST Act, 2017 Export of Goods

Export of Goods means taking goods out of India to a place outside India.

Section 2(6) of IGST Act, 2017 Export of Services

Export of services means,

• The supplier of service is located in India.
• The recipient of service is located outside India.
• The place of supply of service is outside India.
• The payment for such service has been received by the supplier of service inconvertible foreign exchange or in Indian rupees wherever permitted by the Reserve Bank of India.
• The supplier of service and the recipient of service are not merely establishments of a distinct person.

Section 2(10) of IGST Act, 2017 Import of Goods

Import of Goods means bringing goods into India from a place outside India.

Section 2(11) of IGST Act, 2017 Import of Service

Import of service means,

• The supplier of service is located outside India.
• The recipient of service is located in India.
• The place of supply of service is in India.

Section 2(23) of the IGST Act, 2017: Zero-Rated Supply

Zero-rated supply shall have the meaning assigned to it in section 16.

Sec 16(1) of IGST Act: "zero rated supply" means any of the following supplies of goods or services or both, namely

(a) Export of goods or services or both. (Out of India) OR

(b) Supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit. (Within India)

Supply of Goods from SEZ to DTA

As per Section 30 of SEZ Act, 2005 Goods removed from SEZ to DTA shall chargeable to duties of Custom including anti-dumping, countervailing duty and safe-guard duties under custom tariff Act, 1975 similar to levy of custom duty on such goods imported.

Hence goods clear from SEZ to DTA will be considered as Import of Goods.

Conclusion

What is Export under GST for GOODS as well as SERVICE

• Out of India. Section 2(5) of IGST Act, 2017.
• Supply to SEZ. Section 16(1) of IGST Act, 2017.

What is Import under GST for GOODS

• Out of India. Section 2(10) of IGST Act, 2017.
• Supply from SEZ. Section 30 of SEZ Act, 2005.

What is Import under GST for SERVICE

• Out of India. Section 2(11) of IGST Act, 2017.

Service from SEZ

Inter-State Supply as per Section 7(5)(b) of IGST Act, 2017