Sale from Customs Private Bonded Warehouse to 100%Eou / SEZ - GST applicable or not

[RAMAKRISHNA M]

We are having Customs Private Bonded Warehouse and Items are importing from Italy.

While Selling these imported items from Customs Private Bonded Warehouse to 100%Eou / SEZ - GST applicable or not.

It is like Bonded Warehouse to Bonded Location.

If it is exempted, under which notification.

Kindly share the same.

Thanks & regards,

Ramakrishna.M

[Rajagopalan Ranganathan]

Sir,

According to Section 16 of IGST Act, 2017 "supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit are zero rated supply." A registered person making zero rated supply to a Special Economic Zone developer or a Special Economic Zone unit shall be eligible to claim refund as under: -

(a) he may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit; or

(b) he may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied.

However, conditions, safeguards and procedure for claiming such refund are yet to be notified.

As far as supply of imported goods to EOUs, you have to pay appropriate gst utilizing the ITC of IGST paid on imported goods (that is, CGST and SGST if your warehouse and receiver of the supply are located in the same state or IGST if your warehouse and receiver of the supply are located in different state). If the EOU utilise the goods supplied by you in the manufacture of export goods then the EOU can claim the refund of unutilised ITC.

[Rajagopalan Ranganathan]

Sir,

In continuation of my reply dated 27.10.2017 in respect of supplies made to EOU will be treated as deemed export as Notification No. 48/2017-Central Tax dated 18.10.2017.

The third proviso to rule 89 (1) of CGST Rules, 2017 is amended by Notification No. 47/2017-Central Tax dated 18.10.2017 as under: -

“Provided also that in respect of supplies regarded as deemed exports, the application may be filed by, -

(a) the recipient of deemed export supplies; or

(b) the supplier of deemed export supplies in cases where the recipient does not avail of input tax credit on such supplies and furnishes an undertaking to the effect that the supplier may claim the refund”.

 

[RAMAKRISHNA M]

Dear Mr.Rajagopalan,

Thanks for your swift response.

As you said Rule 89 (1) of CGST 2017 with amended notifications, we can supply to EOUs with exempted GST.

for this Exemption, do we need to collect any Annexure / document / undertaking from recipient before despatching goods.

thanks & regards,

Ramakrishna.M

[Rajagopalan Ranganathan]

Sir,

According to rule 89 (2) (g) of CGST Rules, 2017 "a statement containing the number and date of invoices along with such other evidence as may be notified in this behalf, in a case where the refund is on account of deemed exports." Notification 49/2017-Central Tax dated 18.10.2017 the following documents are to be enclosed with the refund claim as evidence:-

S. No.	Evidence
(1)	(2)
1.	Acknowledgment by the jurisdictional Tax officer of the Advance Authorisation holder or Export Promotion Capital Goods Authorisation holder, as the case may be, that the said deemed export supplies have been received by the said Advance Authorisation or Export Promotion Capital Goods Authorisation holder, or a copy of the tax invoice under which such supplies have been made by the supplier, duly signed by the recipient Export Oriented Unit that said deemed export supplies have been received by it.
2.	An undertaking by the recipient of deemed export supplies that no input tax credit on such supplies has been availed of by him.
3.	An undertaking by the recipient of deemed export supplies that he shall not claim the refund in respect of such supplies and the supplier may claim the refund.

[rajkumar shukla]

Supplies made from customs bonded warehouse to sez /sez units. Are these at par with supplies to sez/sez units from DTA?

AI Summary

GST on Sales from Bonded Warehouses: Zero-Rated for SEZs, Deemed Exports for EOUs under Section 16 IGST Act 2017. A discussion on the applicability of GST to sales from a Customs Private Bonded Warehouse to 100% Export Oriented Units (EOUs) or Special Economic Zones (SEZs) centers around whether these transactions are zero-rated or exempt. According to Section 16 of the IGST Act, 2017, supplies to SEZs are zero-rated, allowing for tax refunds either through bond or payment of integrated tax. Supplies to EOUs are treated as deemed exports under Notification No. 48/2017, requiring GST payment but allowing for input tax credit claims. The forum also discusses necessary documentation for claiming exemptions or refunds.