surendra kumar m (Finance Professional) (21 Points)
21 July 2017We are an SEZ unit having procurements from DTA units. As a SEZ unit, we are entitled with Zero-rated tax in case of procurements from all registered suppliers.
Whether the procurements of goods or services from unregistered suppliers attracts Reverse Charge Mechanism under GST.
Request all the Experts having SEZ exposure can resolve the above.
Thanking you in advance.
Regards, Surendra.
Charanpreet Singh
(Article)
(57 Points)
Replied 21 July 2017
HI Surendra,
Supplies to SEZ can not be made by Unregistered Dealer, as SEZ is considered to be separate territory altogether,
20 lakh limit is available for a dealer who are supplying Intra State basis,
Still if you get some invoice from unregistered vender in SEZ, my view is you should pay and claim refund if the supply comes under the authorized operations,
Hitesh
(Student )
(29 Points)
Replied 22 July 2017
durai
(FCA)
(32 Points)
Replied 07 August 2017
Please refere notification no :18/IGST for serives and notification No:64/Customs for goods received by SEZ is wholly exempte from IGST. Accordingly, no inpu tax is passed on SEZ unit under GST. Thus RCM is not applicate as the underlying supply received at SEZ should be seen as exempted for this purpose
CA Parth Rajendra Almaula
(Chartered Accountant)
(85 Points)
Replied 25 August 2017
Dear Durai,
The notification which you have highlighted relates with the imports made from outside India.
There is no connection with the supplies made from DTA Unit which are unregistered.
So the doubt still remains.
Pramod.k
(Accounts Manager)
(82 Points)
Replied 04 April 2019
Please note that SEZ is treated as a foreign territory for tax purposes. Though SEZs are located in the same country, it has been considered to be located in a foreign territory. SEZs are not considered as a part of India.Therefore, as per GST provisions, unregistered dealers shall not supply goods to SEZ.
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