Despatch to SEZ and EOU

[ASHOK AMIN]

Dear Experts,

What will be the procedure for EOU and SEZ transactions in GST ?

AI Summary

Clarification on GST Treatment for SEZ and EOU Transactions: SEZs Are Inter-State; EOUs Await Specific Guidelines. A participant inquired about the procedure for Export Oriented Unit (EOU) and Special Economic Zone (SEZ) transactions under the Goods and Services Tax (GST). It was clarified that transactions involving SEZs are treated as inter-State trade or commerce according to the IGST Act, 2017, but the Act does not specifically address EOUs, and further clarification is awaited. Another expert noted that EOU supplies are treated as normal supplies with GST charged based on the place of supply, qualifying as deemed exports but not zero-rated like SEZ supplies. Import duties for EOUs may exempt Basic Customs Duty (BCD) but not Integrated GST (IGST).