Dear Experts,
I am giving you one example here in which lets say there are three companies (Company A, Company B and Company S). Company A and B are inter companies (under a roof of a group company). The company S is a customer company which is located in SEZ Unit.
Now lets suppose company S, the customer company wants services from company A. In order to provide the service, Company A raised a service PO on Company B for the providing the service to Company S (which is the customer of Company A).
Company B provided the service to company S against the service PO raised by company A.
Now, as Company S is located in SEZ unit, invoice would be raised by company A to Company S without charging IGST in the invoice (under a LUT / Bond).
The question is, how would the invoice be raised by Company B on Company A for the services provided. Note that none of these companies (A or B) are located in SEZ Unit. Whether company B would raise the invoice normally (i.e. by charging IGST) on Company A or it would not charge any GST (as the ultimate sale was made to SEZ Unit)
My opinion is that GST shall be charged by Company B in the invoice issued on Company A.
Kindly support your answer with relevant provisions of the Act.
Thanks and Regards,
Dhrunil Bhatt
CAclubindia
