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 ??

[KASTURI SETHI]

NOT required.

[RAMESH PRAJAPATI]

Services imported by SEZ are exempted. Secondly it is zero rated supply for a taxable supplier. Need not to pay tax on RCM basis.

[Ganeshan Kalyani]

Gst is not applicable in this case.

AI Summary

Reverse charge not applicable for services received by SEZ unit; such supplies treated as exempt or zero-rated.
The forum concludes that a GST-registered Special Economic Zone unit receiving inbound transportation and advocate services is not liable to pay tax under the reverse charge mechanism because such imported services are treated as exempt or as zero-rated supply when supplied to an SEZ unit.