Gst for sez companies

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PRAVEEN KUMAR

MBA (Finance) B.Com.(P)

1874 Points Posted on 08 July 2017

Dear Experts,

My client is a Company under NSEZ having sales tax registration at Noida doing following businesses

1) Export of IT services

2) Professional IT Services in Domestic market outside of NSEZ to normal clients/companies other than NSEZ and charging Service tax from clients taking input of services also.

we prepare two balance sheet each year, one for NSEZ Unit & other one is for Domestic Unit.

my first question is are we doing correct things charging service tax from our clients currently, or we should have done something differntly.

second question. : what will be do as GST is applicable from 1st July.. we are charing CGST&SGST within UP state as we are registered GST number of UP. and charging IGST outside UP.... is it correct?

Regards

Praveen

Replies (2)

PRAVEEN KUMAR

MBA (Finance) B.Com.(P)

1874 Points Posted on 10 July 2017

no reply... :-( waiting for some expert reply

Please note that a concept of zero-rated supplies has been introduced under GST - one for exports; other for supplies to SEZ. I understand that, being an SEZ unit, you are exporting services outside India. In such cases, you may either pay GST on the outward supplies and claim refund or export services under bond/LUT without charging GST and claim refund of input tax credit. Secondly, while supplying to domestic customers, it should be considered as an inter-State supply. However, there is an ambuguity as to whether SEZ units are required to pay GST on their supplies to DTA, as these supplies are considered as a deemed import transaction for the DTA units and accordingly, the DTA unit would be required to discharge IGST.