GST - RCM on Inward supplies by unit regd in sEZ

[Madhavan iyengar]

In respect of inward supplies received by GST regd unit located in SEZ please clarify on following

a) is the unit required to pay GST on RCM basis in respect of supplies received from Advocate/ GTA etc

b) is the unit required to pay GST on RCM basis in respect of supplies received from unregd persons during the period 1st July 17 to 13th OCt 2017

Kindly share views and position in law

[KASTURI SETHI]

(a) SEZ unit will pay GST and claim refund.

(b) Supply of service to SEZ is to be treated as inter-State supply. During the period 1.7.17 to 13.10.17, supplier of service to SEZ was required to be registered compulsorily.

[Guest]

Ans for (a): yes, the SEZ unit have to pay GST under RCM. Refer faq 41 in page 484 of faqs released by cbic on 3rd dec,2018

Ans for (b): As sales to SEZ are treated as inter state supplies, the supplier have to get himself registered and hence there is no concept of procurement from unregistered person in this case. Refer to faq 54 in page 492

[chandra shaker]

GST on RCM basis in respect of supplies received from unregd persons during the period 1st July 17 to 13th OCt 2017

Yes, any registered dealer either regular or composition dealer must pay GST on inward supplies liable for tax at applicable rates ,accordingly paid GST on inward supplies shall be claimed as input tax credit in the relevant month ,return due to file..

AI Summary

GST on Reverse Charge for SEZ Units: Advocate, GTA, and Unregistered Supplies Clarified for July-Oct 2017 Period. A discussion on a forum addressed the applicability of Goods and Services Tax (GST) on a Reverse Charge Mechanism (RCM) basis for inward supplies to a Special Economic Zone (SEZ) unit. The queries focused on whether the SEZ unit must pay GST on supplies from advocates, Goods Transport Agencies (GTA), and unregistered persons between July 1, 2017, and October 13, 2017. Responses indicated that SEZ units must pay GST under RCM and can claim refunds. Supplies to SEZs are treated as inter-State supplies, requiring supplier registration, thus negating the concept of procurement from unregistered persons during the specified period.