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Issue ID : 112935
- 0 -

SEZ Provision for consumption at SEZ on GST

Date 12 Oct 2017
Replies6 Answers
Views 3317 Views
Asked By

Hi Support,

I have two queries:-

Number : - 1

Can you please help me out by sharing the provision ACT as per below example.

 

A supplier from state (Rajasthan) is delivering material at SEZ unit which is also in the same state (Rajasthan).

The ship to address is SEZ ( Rajasthan) and bill to address is Alwar ( Rajasthan) of material.

 

Ship to (Material Delivery Only)

Bill to party name

Supplier

Location

SEZ (Jaipur, Rajasthan)

Alwar (Rajasthan)

Jaipur Rajasthan (Outside SEZ)

My queries are:-

  1. What will be applicable on TAX INVOICE i.e. CGST/SGST or IGST.
  2. Which SEZ provision will be applicable.

Number : - 2

A company has obtained an LUT registration, now the company is billing at 0% rated to a SEZ Unit against LUT registration number in term of consumables item, repairing and maintance work.

My queries are : -

  1. Does it really required to be billed at IGST just because of consumables. It mean LUT is worthless.
  2. If the company is requiring any repairing work OR maintance work then LUT is again worthless.
  3. Where the LUT will applicable or what does the mean of `GOODS & SUPPLY` used in LUT.

Please feel free to call any time on below numbers :-

Mobile:- +91-9672688111

Ph.-: 0141 – 711 4099

6 answers
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Old Query - New Comments are closed.

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- 0
Replied on Oct 12, 2017
1.
  1. IGST is applicable.
  2. Refer Section 16 of IGST Act.
  3. Supplies made to an SEZ unit or a SEZ developer are zero rated.
  4. The supplies made to an SEZ unit or a SEZ developer can be made in the same manner as supplies made for export:
  5. The option of payment of IGST under claim of refund;
  6. Or Can be done under bond or LUT without payment of any IGST.
  7. The above is my opinion
- 0
Replied on Oct 12, 2017
2.

I support the views of Raja Swaminathan, Sir. LUT is meant for safeguarding Govt. revenue and nothing else. LUT is a very important legal document. It binds an assessee to pay Govt. dues, if any untoward incident happens due to natural cause or human error, mishap etc.

- 0
Replied on Oct 12, 2017
3.

Agreed Sir,

Can consumables i.e Biscuits, paper plates, and house kipping materials i.e. clerical chemical and washroom paper napkins. be able to take LUT advantage.

- 0
Replied on Oct 12, 2017
4.

Dear querist,

LUT is a facility provided by Govt. of India to the suppliers of goods or/and services to get an exemption from paying IGST against the supply of goods or services to SEZ unit or SEZ developer. The consumables you are referring to obviously falls under the category of supply of goods and hence exemption from paying IGST is available to you if you execute LUT .

- 0
Replied on Oct 13, 2017
5.

Sh.Bhaskat Rao ji. Thanks for completing my reply as well as enrichment of my knowledge.

- 0
Replied on Oct 13, 2017
6.

Sir Gorantla Bhaskar Rao & KASTURI SETHI,

Respect your knowledge and hope I will clear more things for me as well.....

Many thanks for clarity on consumables.

Now, The thing is the officer who is deputed at SEZ unit is sharing his words that no one can get Tax exemption against LUT on such kind of items (Biscuits, paper plates, and house kipping materials, i.e. clerical chemical and washroom paper napkins).

What I should do clear these things...

Is here any rule or clause for such theory.

Happy to discuss on call if possible....

Mobile:- +91-9672688111

Ph..-: 0141 – 711 4099

Old Query - New Comments are closed.

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