Does RCM applicable to SEZ ?

[RameshBabu Kari]

Dear Experts,

Does RCM applicable to SEZ, when sez unit purchase goods from an unregistered person ?

AI Summary

Reverse Charge Mechanism under GST does not apply to SEZ units purchasing from unregistered persons due to interstate supply rules. A user inquired whether the Reverse Charge Mechanism (RCM) under the Goods and Services Tax (GST) applies when a Special Economic Zone (SEZ) unit purchases goods from an unregistered person. An expert responded that RCM does not apply because SEZ supply is considered an interstate supply, and an unregistered person cannot engage in interstate supply.