GST on Supply from EOU to EOU.

[JAIPRAKASH RUIA]

Sir,

which GST will be applicable for EOU to EOU Supply. IGST Only or CGST/SGST also as applicable on the basis of POS.

[Nash Industries I Pvt Ltd]

Supplies from one EOU to another EOU shall attract IGST (if inter state) and CGST+SGST if intra state.

[KASTURI SETHI]

IGST only

[JAIPRAKASH RUIA]

different view were expected from learned experts because if see the table 6c of gstr1, only IGST Column is there but we see the Form B format attached with circular in this reagrd, CGST/SGST, IGST and Comp Cess columns are there.

However, I would like to know the reason for applicability of IGST only as per charging section. is there any changes in charging section for deemed export.

thanks

[Nash Industries I Pvt Ltd]

During the Pre-GST regime, VAT or CST as the case may be was levied for the movement of goods from one EOU to another. From the CE point, exemption under 22/2003 (CT3) and not 52/2003 (PC) was available.

There is no change in the POS after GST. EPC and the DGFT has clarified (through FAQ) that the supply to EOU is like any other supply and GST is applicable.

Please refer to para 6.13 (a) of the FTP (wef 05.12.2017) where it says transfer of manufactured goods from one EOU to another EOU is allowed on payment of applicable GST and compensation cess with prior intimation....

If the intention was to levy IGST (like in the case of imports), the said para would have said on payment of IGST. But it says on payment of applicable GST. It means it depends on POS.

Regards

S.Ramaswamy

[JAIPRAKASH RUIA]

S Ramaswamy Sir,

I fully agree with your interpretation sir, but what about the format of TABLE

C of GSTR1 where supply as deemed export is going to be filled by supplier unit and there is no option for SGST/CGST and no amendment yet in the format.

I am also looking for the logic which proves that only IGST is chargeable other that the format of GSTR1.

Tax to be charged should be decided by act and rules not by format of one or other form.

[Nash Industries I Pvt Ltd]

Lets wait for the changes in the portal.

AI Summary

GST on EOU-to-EOU supplies may follow place-of-supply rules determining IGST or CGST/SGST, portal format discrepancies noted.
Applicability of GST on transfers between EOUs depends on the place of supply: IGST applies for inter-state movements and CGST plus SGST for intra-state movements. Administrative guidance permits transfer of manufactured goods between EOUs on payment of the applicable GST and compensation cess, implying POS-based tax treatment. Reporting-format discrepancies-such as a GSTR-1 table presenting only an IGST column for deemed exports-have generated practitioner confusion pending portal and form updates.