Is supply of goods to SEZ imposed GST?

  

Impact of GST on SEZ, supply of goods

  

Is supply of goods to SEZ imposed GSTThis post explains about supply of goods to SEZ under GST. We hope this article about supply of goods to SEZ under GST enlighten you to learn more.

 

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

 

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

 

According to GST Law, supply of goods 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 servicesor 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 Goodsand 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 refundunder 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, withoutpayment 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 andclaim 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.

 

Do you wish to add more information about supply of goods to SEZ under GST regime? Share below your experience about supply of goods to SEZ under GST regime.

 

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

Changes of operation of SEZ

 

 

 

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Comments


surajmal jain: material/goods supplied to SEZ worth rs 10000.00 IGST charged @ 18% 1800.00 total 11800.00 SEZ makes payment of rs 10000.00 only In GSTR 1 we have paid this 1800.00 how to get refund?

Pradeep Gupta: In case of reverse charge, SEZ unit are liable to pay IGST for specified supplies of services or goods. If SEZ unit pay, whether it can file the refund claim?

Maulik Pandya: Dear Sir, i am supplying the materials to SEZ unit, The unit said me that add 28 % IGST & unit will not pay 28%, i have to pay the 28% and claim for refund. other option that, how can i apply for Bond/ LTU or any undertaking ? guide me

RUDRAKSH: Hi Team, We intend to make supply to a SEZ developer. SEZ Developer wants us to store the goods inside SEZ in a FTWZ Unit (VMI) and then make supplies. Question is can we supply goods from DTA to a FTWZ unit to store goods on our behalf? Regards, Rudraksh

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