TaxTMI 
TaxTMI 
We have supplied goods to SEZ unit without payment of GST. Now SEZ unit has rejected the said goods on Tax invoice with IGST. for eg. we have issue invoice of ₹ 100 and SEZ unit raised invoice of ₹ 100+18. in normal circumstances we would have been issued credit note of ₹ 100 and same will be added in GSTR-1.
Goods Rejected by SEZ to DTA
07 Aug 2019 
4 Replies 
7558 Views Asked by
Inter-state supply: SEZ-to-DTA clearances should be treated as supplies under GST rather than imports for return reporting.
Supplies by an SEZ unit to a DTA on rejection should be treated as inter state supplies rather than imports for GST purposes. Although SEZs are deemed outside customs territory and clearances to DTA attract customs and IGST in practice, the SEZ Act's limited overriding effect does not convert SEZ DTA movements into imports under GST, and such clearances are not covered by the deemed export notification; therefore they should be reported as inter state supplies in GST returns. (AI Summary)
Supplies by an SEZ unit to a DTA on rejection should be treated as inter state supplies rather than imports for GST purposes. Although SEZs are deemed outside customs territory and clearances to DTA attract customs and IGST in practice, the SEZ Act's limited overriding effect does not convert SEZ DTA movements into imports under GST, and such clearances are not covered by the deemed export notification; therefore they should be reported as inter state supplies in GST returns. (AI Summary)