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Gst service bill to sez

Narendra Reddy (Asst. Manager Accounts) (52 Points)

27 June 2020

service provided to andhrapradesh sez area and the head office of them is in gurgoan but they are asking to not to charge igst and treat it as sez supply any one can please help me

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4 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14916 Points)
Replied 27 June 2020

Please refer section 16 of the IGST act 2017 and you have to act accordingly .

JASKARAN SINGH (435 Points)
Replied 27 June 2020

IGST will applied in all cases if supplies is made to sez.... supplies to sez is deemed to be export

KRISSHNAN KP (4215 Points)
Replied 28 June 2020

The transaction falls under IGST

1 Like

Pankaj Rawat (GST Practitioner) (55062 Points)
Replied 28 June 2020

Dear Narinder :
As per Section 16 of IGST Act supply to Sez is treated as Zero rated sale (Export sale )

So need to charge IGST on bill to Sez.
Else file Lut as per Rule 96A online on portal form RFD -11 & no need charge IGST on export invoices.

Now term of Notification 15/2017 igst (r) , give exemption to Sez unit for any goods & services imported for authorised Operations.
So even though you charge IGST on IGST on bill (without lut) to Sez unit , the Sez unit will never pay you the IGST amount. you have to claim refund for the same as per prescribed in Section 54 of CGST Act .

So , You can charge IGST but sez will not pay you iGST Amount.