Procedure of sale to sez unit by a trader

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Nikhil Jain

Co Owner

40 Points Posted on 26 March 2012

Dear Experts,

I am a trader registered with Excise & Sales Tax Department. I want to know the complete procedure for making sales to SEZ Units. Also What all Forms I need to collect from the customer and what all forms do I need to submit (If any) to my supplier (Manufacturer).

If Manufacturer will treat it as normal sales where I am the buyer charging full excise and vat. How can I claim refunds.

Is there any procedure where the hassles of taking refund dont occur and directly manufacturer issues invoice in my favour without charging any excise and tax against submission of proof of export/sale to SEZ.

Thanks in Anticipation.

Nikhil Jain.

Replies (2)

DEEPIKA TYAGI

Director HR

241 Points Posted on 17 April 2012

Dear Mr.Nikhil Jain

Whether You got the above information , If yes please share with me also.

Thanks In Advance:

DEEPIKA TYAGI

PRIMECFO @ HOTMAIL.COM

Sunil Kumar G

AGM Taxation

446 Points Posted on 18 April 2012

Sale to SEZ

Sale of goods to a unit located within the same state is governed by the VAT legislation of the relevant state. In most states, sales of goods to SEZ units are not exempt from VAT. Instead, such sales have been classified as ‘zero-rated’ sales. This implies that sales to SEZ are chargeable to VAT at 0%, and the seller is eligible to avail input tax credit, subject to other prescribed conditions. No CST shall be payable by any dealer in respect of sale of any goods made by such dealer, in the course of inter-State trade or commerce, to a registered dealer( developer of SEZ or SEZ Unit as the case may be) for the purpose of manufacture, production, processing, assembling, repairing, reconditioning, re-engineering, packaging or for use as trading or packing material or packing accessories in an unit located in any special economic zone, if such registered dealer has been authorised to establish such unit by the authority specified by the Central Government in this behalf. (Development Commissioner is of SEZ is authorized to permit a person to set up unit in SEZ)
(Section 8(6) of Central Sales Tax Act, 1956).

For more information,

Please visit https://cstonline.in/CST_Procedure.html