Is GST applicable on supply of services to SEZ?

  

Zero rated GST on supply of services to SEZ

  

Is GST applicable on supply of services to SEZ

This post explains about GST applicable on supply of services to SEZ. I hope this article about Zero rated GST on supply of services to SEZ helps you to learn about GST applicable on supply of services to SEZ.

 

The introduction of GST system of taxation changes each and every sectors of Indian economy.

 

How does GST effect on SEZ when services supplied to SEZ units? Does GST is attracted on such supply of services to SEZ?

 

According to GST Law, supply of services to SEZ is treated as zero rated supply.

What does zero rated supply of goods mean?

 

The Section 16 of the IGST Act, 2017 explains zero rated supply as below:

 

“zero rated supply” means any of the following supplies of goods or services or both, namely:––

 

(a) export of goods or services or both; or

 

(b) Supply of goods or services or both to a Special Economic Zone developeror a Special Economic Zone unit.

 

(2) Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services Tax Act, credit of input tax may be availed for making zero-rated supplies; notwithstanding that such supply may be an exempt supply.

 

(3) A registered person making zero rated supply shall be eligible to claim refund under either of the following options, namely:––

 

(a) he may supply goods or services or both under bond or Letter of Undertaking,subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit; or

 

(b) he may supply goods or services or both, subject to such conditions,safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied,in accordance with the provisions of section 54 of the Central Goods and Services Tax Actor the rules made thereunder.

  

Share your knowledge and experience to add information on this subject about Zero rated GST on supply of services to SEZ.

 

Previous posts about SEZ:

Advantages of a SEZ unit. Government benefits in India for a SEZ Unit

Export Promotion Council for EOUs and SEZs

No EDD charges under SVB for EOUs/SEZs

Rebate of duty on goods cleared from DTA to SEZ

clarification on exemption of Liquefied Natural Gas (LNG) for SEZ

GST impact on Special Economic Zones, SEZ

IGST exemption on imports by SEZ units

GST on imports by EOUs and SEZs

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Comments


Suresh Sharma: Dear Sir, We are hotelier in SEZ and our services to SEZ units . What tax GST applicable. Kindly suggest us. Thanks, Yours Truly, SURESH SHARMA

PRAKASH: This article gives some information to supply of goods or services to SEZ units but it is not clear about the process of supply. Let us know the process of supply to SEZ unit. Is it required to bill GST amount in invoice and then they can claim refund or will the produce FORM I against supply . Kindly clarify. Regards Prakash

teena: If our company is providing transportation services from DTA to SEZ unit and we need to avail ITC for GST purchase....in that case, can we charge GST to SEZ unit . What would be the requirements if we are making zero rated supply of services....?

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