banner_ad

Reverse charge under gst for sez unit

RCM 3854 views 5 replies

We 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.

Replies (5)

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,

 

 

if we pay RCM then there is NO provision relating to Refund

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

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.

 

 

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.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details