Query Related to RCM in GST

[Mehul Pandya]

Dear Sir,

In case if XYZ LTD. is registered in GST and located in SEZ area. He received some transportation services and advocate services as per 9(3) of CGST Act.

In this case do SEZ unit require to pay GST under RCM ??

AI Summary

SEZ Units Exempt from GST Under Reverse Charge for Transport and Advocate Services Per Section 9(3) of CGST Act. A query was raised regarding whether a Special Economic Zone (SEZ) unit, XYZ LTD., needs to pay Goods and Services Tax (GST) under the Reverse Charge Mechanism (RCM) for transportation and advocate services received under section 9(3) of the CGST Act. Three responses clarified that the SEZ unit is not required to pay GST under RCM. The services imported by SEZ are exempt, and it is considered a zero-rated supply for the taxable supplier, thus GST is not applicable in this scenario.