GST on reverse charge on GTA in respect of supply to SEZ units.

[HARISH RADHAKRISHNAN]

I am a unit in the SEZ and I have received goods in the SEZ through the local transport bill is more than rs 1500. I am now supposed to pay tax on reverse charge basis on the GTA charges.

As an SEZ I am eligible for an exemption from tax as the supply to SEZ is ZERO RATED for which the Service provider i.e. transport operator in this case should execute a bond for claiming the exemption.

However in terms of the RCM procedure the SEZ unit is the service provider hence this is a case of supply of service to yourself and therefore not taxable at the hands of the SEZ unit . In case this is not a correct position to hold can the SEZ unit use his SEZ Bond cum LUT for claiming this exemption.

Thanks

AI Summary

Reverse charge on transport to SEZ units requires the SEZ recipient to obtain LUT or pay tax and claim refund.
Reverse charge liability attaches to GTA services for supplies to SEZ units treated as inter state supplies; the SEZ recipient is liable to pay tax under the notification and must furnish a valid GST LUT for zero rated supplies or pay the tax and apply for refund. The SEZ Bond cum LUT executed under the SEZ Act and Customs Act does not substitute for GST compliance regarding LUT or payment/refund for reverse charge liability.