Services Supplied to Free Trade Warehousing Zone

Services Supplied to Foreign Company Located in Free Trade Warehousing Zone (Unregistered in GST) Should be consider as taxable, exempt or zero rated. Please clarify the same with supportings. 

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Quick Summary
This discussion seeks clarification on the Goods and Services Tax (GST) treatment for services provided to a foreign company operating within a Free Trade Warehousing Zone (FTWZ) that is not registered for GST. The core question is whether these supplies should be classified as taxable, exempt, or zero-rated, considering potential benefits and exemptions available to SEZ operators under GST.

Some of the benefits and exemptions that SEZ operators are eying from GST are:

  • Supplies into SEZ to be exempt from GST and be treated as export outside India
  • Easy Refund Procedure of input GST paid on procurement of Goods and Services if any.
  • Minimalistic Compliance requirement and return filing procedure.
It should be SEZ transactions and it is exempt from GST

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