TaxTMI 
TaxTMI 
Dear Experts,
What will be the procedure for EOU and SEZ transactions in GST ?
Despatch to SEZ and EOU
15 Jun 2017 
4 Replies 
3216 Views Asked by
Inter State classification of SEZ transactions makes IGST applicable, while EOU treatment remains unsettled and domestic supplies are taxable.
Supplies involving Special Economic Zones are treated as inter State trade or commerce under IGST, making IGST and place of supply rules applicable; Export Oriented Units are not explicitly covered, domestic supplies to EOUs are treated as normal supplies subject to GST based on place of supply, may be deemed exports but are not automatically zero rated like SEZ or export supplies, and imports by EOUs may attract IGST while basic customs duty is likely exempted. (AI Summary)
Supplies involving Special Economic Zones are treated as inter State trade or commerce under IGST, making IGST and place of supply rules applicable; Export Oriented Units are not explicitly covered, domestic supplies to EOUs are treated as normal supplies subject to GST based on place of supply, may be deemed exports but are not automatically zero rated like SEZ or export supplies, and imports by EOUs may attract IGST while basic customs duty is likely exempted. (AI Summary)