Claim of refund on Zero Rated supplies to SEZ unit

[sukhbir singh]

Can we file Refund Claim on supply to SEZ unit when the payment from the buyer has not been received/on credit as usual.

is it compulsory that we can file refund claim only after receipt of payment from buyer.

[KASTURI SETHI]

Yes. Ultimate goal is receipt of foreign exchange. I am taking about practical position whether pre-GST era or post GST era. Refund is admissible only when you pay tax and thereafter claim refund. There is prescribed pro forma and it is to be certified by Head of SEZ unit to the effect goods or services have been used in SEZ operations.

[Mr Rao]

Dear querist,

I endorse the views expressed by Shri Sethi an expert.

AI Summary

Zero-rated supply refund: claim allowed subject to tax payment and SEZ head certification; foreign exchange realisation required.
Refund on zero-rated supplies to a SEZ unit is conditional on payment of tax followed by a refund claim; non-receipt of payment from the buyer does not automatically bar the claim. The refund process requires the prescribed pro forma certified by the Head of the SEZ unit confirming use in SEZ operations, and the underlying objective remains realisation of foreign exchange.