Does RCM applicable to SEZ ?

[RameshBabu Kari]

Dear Experts,

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

[Himansu Sekhar]

No, sez supply is an interstate supply. Unregd person cannot make up inter state supply.

AI Summary

Reverse charge mechanism unavailable where SEZ unit purchases from an unregistered supplier because such suppliers cannot effect interstate supply. SEZ supplies are treated as interstate supply, and an unregistered person cannot make an interstate supply; therefore purchases by an SEZ unit from an unregistered supplier do not attract the reverse charge mechanism.