Clarification regarding payment of GST by a unit in International Financial Services Centre SEZ for procurement of input service on which GST is payable on reverse charge basis.

Reverse charge liability for IFSC SEZ units: procure specified input services without integrated tax by furnishing Letter of Undertaking.

Units in IFSC SEZ receiving input services chargeable on reverse charge are deemed suppliers and liable for integrated tax, but may procure such services without payment of integrated tax by furnishing a Letter of Undertaking in lieu of a bond, subject to the procedural conditions and exceptions applicable to such undertakings; the clarification applies mutatis mutandis to IFSC SEZ units and aligns reverse-charge treatment with zero-rated import of services for authorized operations.