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Supplies to SEZ UNIT

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Prem Kewalramani

292 Points Posted on 04 May 2024

One dealer Registered in Maharashtra wants to supply some capital Assets like Hand Dryer etc to One Sez unit having Registered office in Maharashtra only

That Sez Unit wants that IGST be charged in that supply NOT Cgst + Sgst

Can this be done because both dealers have only offices in Maharashtra and Place of Supply is Maharashtra only..

Dear Experts please Clear my doubt and also inform what type of Declaration to be mentioned in Sales Invoice..

Replies (5)

Quick Summary

A Maharashtra-based dealer is asking for clarification on charging IGST, rather than CGST+SGST, for capital asset supplies to an SEZ unit also located in Maharashtra. Experts confirm that supplies to SEZ units are treated as exports, thus IGST should be charged. It's also suggested that applying for a Letter of Undertaking (LUT) to supply without GST might be a beneficial option.

RAJA P M

"Do the Right Thing...!!!"

128162 Points Posted on 04 May 2024

Yes, the buyer is correct.

For supply to SEZ area it's dealing as export. So, charges IGST on Your sales bill.
In invoice show as SUPPLY TO SEZ @ (TAX RATE)

FOR YOUR REFERENCE:
--* BETTER TO APPLY LUT AND SUPPLY WITHOUT GST.