P.R.KABRA (PROFESSIONAL ACCOUNTANT) 08 November 2019
My client started supplying goods to customer in SEZ. How to charge GST and as GST not chargeable, how to get credit of Input tax? Is there any other method in which bond etc is not required?
At present, we are charging GST but party is not paying it. Hence we pass journal entry of reversal of GST . But I am satisfied with this. What entries I need to pass and get credit of ITC?
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RAJA P M ("Do the Right Thing...!!!") 08 November 2019
Yes... Supplies to SEZ is treat as export of supply. IGST is applicable for the supply to SEZ.
Therefore, the suppliers supplying goods to SEZs can:
Supply under bond or LUT without payment of IGST and claim credit of ITC;
Supply on payment of IGST and claim refund of taxes paid.