TaxTMI 
TaxTMI 
Dear Experts,
Can anybody explain the applicability of RCM for SEZ Developers / Units as SEZ is coming under IGST?
Regards
Panch
RCM applicability for SEZ under GST
16 Aug 2017 
13 Replies 
11347 Views Asked by
Reverse Charge Mechanism: supplies to SEZ treated as zero-rated exports, so RCM generally does not apply while registration and credit rules remain relevant.
Applicability of the Reverse Charge Mechanism to supplies to SEZ developers/units depends on their classification as zero-rated exports and interstate supplies. Supplies to SEZ are treated as exports and zero-rated under GST, so RCM generally does not apply. However, interstate supplies to SEZ typically require supplier registration; an unregistered supplier can still supply to SEZ but registration is needed for following zero-rated procedures and for claim of Input Tax Credit or refund, creating compliance and credit issues for SEZ recipients procuring from unregistered vendors. (AI Summary)
Applicability of the Reverse Charge Mechanism to supplies to SEZ developers/units depends on their classification as zero-rated exports and interstate supplies. Supplies to SEZ are treated as exports and zero-rated under GST, so RCM generally does not apply. However, interstate supplies to SEZ typically require supplier registration; an unregistered supplier can still supply to SEZ but registration is needed for following zero-rated procedures and for claim of Input Tax Credit or refund, creating compliance and credit issues for SEZ recipients procuring from unregistered vendors. (AI Summary)