GST for Subcontractor

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This discussion clarifies GST obligations for subcontractors providing services to main contractors within Special Economic Zones (SEZs). Generally, if the place of supply is the SEZ, the subcontractor's supply is considered Nil rated, similar to the main contractor. However, this is contingent on having a Letter of Undertaking (LUT) or Bond. Without a LUT/BOND, the supply becomes taxable, with an 18% IGST applicable.

ashok kumar

ashok kumar (Querist)
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29 August 2023 if subcontractor provider services to Main contractor in SEZ , Does the subcontractor need to pay GST or it can also shows the supply as Nil rated like the main contractor.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 August 2023 The place of supply by sub contractor is SEZ so it's Nil rated like the main contractor.

RAJA P M

RAJA P M (Expert)
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29 August 2023 Yes, I agreed with Mr CA R SEETHARAMAN Sir... Also if the supply with LUT/BOND then its Nil rated supply. If the LUT/BOND not available then its taxable and IGST 18% applicable.

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