RCM applicability for SEZ under GST

[Velayutham Panchatcharam]

Dear Experts,

Can anybody explain the applicability of RCM for SEZ Developers / Units as SEZ is coming under IGST?

Regards

Panch

AI Summary

Understanding Reverse Charge Mechanism: SEZ Developers & Units Must Register for GST Compliance & Zero-Rated Supplies A discussion on the applicability of the Reverse Charge Mechanism (RCM) for Special Economic Zone (SEZ) developers and units under the Goods and Services Tax (GST) regime. Participants clarify that supplies to SEZs are considered exports and are zero-rated, meaning GST is not payable. However, registration is mandatory for interstate supplies, including those to SEZs. If a registered SEZ unit receives goods/services from unregistered suppliers, it is still treated as an export. To claim Input Tax Credit (ITC), GST registration is necessary. The discussion highlights the importance of registration for compliance with statutory requirements and monitoring zero-rated supplies.