Gst on supply by sez

This query is : Resolved

Guest

Guest (Querist)

26 September 2017 Respected sir/mam,

What is the treatment of GST on supply made by SEZ to EOU or others. If supply made by SEZ to a merchant exporter and shipped to port then what should be treatment?

It's really a big confusion under GST regime and i posted many times but didn't get any suggestion from experts. Kindly suggest if anyone known of the fact and having clarity.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

26 September 2017 Charge IGST on such supplies.

Guest

Guest (Querist)

26 September 2017 thank you sir.

whether it is treated as DTA Sale? if Yes, then whether SEZ can sale to DTA?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

26 September 2017 Yes it will be treated as DTA sale. Yes SEZ can sell to DTA with applicable IGST.

Guest

Guest (Querist)

26 September 2017 thank you sir,
Shipping address is of port and shipped to port and billed to an EOU. Then is it a DTA Sale?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

26 September 2017 In relation to the EOUs, all imports and domestic procurements are duty free. Under GST regime also it has been clarified that EOUs are allowed to import goods for the authorized operations without paying BCD. But such goods would suffer IGST and applicable cesses. In respect of indigenous procurements, the taxes so paid will be available as input tax credit (ITC) to EOUs and refund of the same can be claimed after exports.

Guest

Guest (Querist)

26 September 2017 Thank You sir,

Whether any RCM applicable if purchase from SEZ unit(SEZ is selling on LUT i.e. without GST)???

Guest

Guest (Querist)

26 September 2017 Thank You sir,

Whether any RCM applicable if purchase from SEZ unit(SEZ is selling on LUT i.e. without GST)???

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

26 September 2017 SEZ has to be compulsorily registered with GST and pay applicable GST hence reverse charge will not arise.

Guest

Guest (Querist)

28 September 2017 Thank you sir,
But if SEZ transfers on LUT then whether EOU or others have to take it in RCM?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

28 September 2017 In such a case no RCM applicable as undertaking given for payment.

Guest

Guest (Querist)

28 September 2017 ok, Thank you very much sir

Pramod.k

Pramod.k (Expert)
Follow

04 April 2019 Dear Sir,

What is treatment, if services are exporting (supply) to outside India from SEZ Unit, whether IGST shall be applicable?
Could you please let us know the rules and procedures.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

09 April 2019 Furnish Letter of Undertaking no igst payable.