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GST Input Credit for SEZ work

j.saranya (Accountant) (85 Points)

14 May 2021

Dear All,

We are construction contractors. We are doing job in SEZ Zone without IGST. Kindly clarify that we are allowed to take GST input credit for the SEZ work materials purchased by us.

Thanks in advance.

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5 Replies

CA Mayank A Jain (Chartered Accountant in Practice) (1009 Points)
Replied 15 May 2021

Yes. you can avail ITC on inputs as it is used for making zero rated supplies. You can also claim refund.

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 17 May 2021

Yes ITC is available.

Ravinder Singh (Direct & Indirect Taxation professional) (110 Points)
Replied 17 May 2021

Yes you can take credit.

Goutam Hebbar (Articled Assistant) (53 Points)
Replied 17 May 2021

Yes. You can take the credit.

Section 16(2) of the IGST act specifies that ITC may be availed on inward supplies for making zero-rated supply, notwithstanding the exempt nature of the zero-rated supply.

Zero-rated supply is an expression that covers two kinds of supplies: i) exports, and ii) supplies to a SEZ unit or SEZ developer.

So if you are adhering the GST rules properly then you can claim full ITC on the materials & services availed in regards to construction work of SEZ.