23 July 2017
Dear Sir,
Greetings from Ocean Interiors…!!!
With reference to the above subject, we would like to introduce ourselves as M/s.Ocean Interiors (P) Limited and are in this industry for more than two decades. We are allied to businesses like Infra, Civil Construction & Turnkey Fit-outs.
As of GST is concerned, we are facing day to day issues on the below aspects for which we need better clarity and solution to proceed further.
With respect to SEZ projects,
· Does our client need to have separate GST registration for having SEZ unit?
· Do we need to provide/submit any bond or letter of undertaking to the Government?
· For getting exemption, do we still need to issue ARE-1 form to our supplier?
· What are the documents we have/need to maintain?
· We understand that, we can avail Input Tax Credit; request your inputs on the same.
Your clarification in this regard will be very much valuable to us.
Q1: Does our client need to have separate GST registration for having SEZ unit? Ans: Yes. As per section 24(i) of CGST Act persons making inter-state supply should compulsorily register. As per section 7(5)(b) of IGST Act supply to or by a SEZ developer or SEZ unit shall be considered as inter-state supply.
Q2: Do we need to provide/submit any bond or letter of undertaking to the Government? Ans: You have two options when supplying to a SEZ. Refer Section 16(3) of IGST Act for the two options. Option (a) mentioned in the section requires you to make supplies under Bond/LUT. Option (b) does not require such Bond/LUT. You need to see which option is beneficial for your business.
Q3: For getting exemption, do we still need to issue ARE-1 form to our supplier? Ans: As far as I know, all such procedures have stopped. Now only e-way bill has to be issued and further based on the option exercised as mentioned in Ans 2 above, the relevant procedure has to be followed.
Q4: What are the documents we have/need to maintain? Ans: Please refer: Rule 96 of CGST Rules Rule 96A of CGST Rules Circular No. 4/4/2017 - GST [F.NO.349/82/2017-GST], Dated 7-7-2017 Circular No.2/2/2017 - GST, Dated 4-7-2017
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