TaxTMI 
TaxTMI 
Whether reverse charge is applicable for advocate services rendered to SEZ Units?
If yes, then what about the amount paid under reverse charge? Can we claim refund for the same?
Please clarify...
Reverse charge on SEZ units
31 May 2018 
12 Replies 
19718 Views Asked by
Reverse charge on services to SEZ units: recipient may be liable for GST, with ITC and refund routes available.
Where an advocate located in India supplies services to an SEZ unit located in India and the place of supply is in India, the transaction is an inter state supply and the SEZ recipient is, in principle, liable to pay tax under the reverse charge mechanism. SEZ units that discharge tax under reverse charge may claim input tax credit for tax paid and, where credit remains unutilised because supplies to SEZs are zero rated or exempted by notification, seek refund or utilise the credit for IGST on exports. Notifications exempting IGST on services received by SEZs from non resident suppliers do not negate RCM when the supplier is in India. (AI Summary)
Where an advocate located in India supplies services to an SEZ unit located in India and the place of supply is in India, the transaction is an inter state supply and the SEZ recipient is, in principle, liable to pay tax under the reverse charge mechanism. SEZ units that discharge tax under reverse charge may claim input tax credit for tax paid and, where credit remains unutilised because supplies to SEZs are zero rated or exempted by notification, seek refund or utilise the credit for IGST on exports. Notifications exempting IGST on services received by SEZs from non resident suppliers do not negate RCM when the supplier is in India. (AI Summary)