supply of goods to SEZ from domestic tariff area

[VENKAT S]

the goods described Tissue materials procured from supplier through Inter State with IGST from domestic tarrif area to SEZ units at different locations in and around chennai after obtaining LUT from GST. Now we have made refund of unutilised INPUT IGST through online. Now the officer at SEZ is refusing to grant approval stating that the tissue materials are not exempt from GST. The government has to issue clarifications on this since the supplies made to SEZ without GST are getting blocked with working capital of cash flow. TREAT THIS AS MOST IMPORTANT.

CA S VENKATA SUBRAHMANYAM

[KASTURI SETHI]

Can you give nomenclature of tissue materials along with Chapter/Heading/sub-heading ?

[MUKUND THAKKAR]

Your Query is not clear, Supply in to SEZ is ZERo rated and I think you considering as exempted. please clearify the details as ask by Kasturiji sir.

[VENKAT S]

1. Product Code - 1005 - HSN - 48182000 - Hard Roll Tissue - Toilet Hand towel

2. Product Code - 4001 - HSN - 48181000 - Bathroom Tissue - Toilet towel

3. Product Code - 30895 - HSN - 34013090 - Indian Foam - Hand Wash

4. Product Code - 1357 - HSN - 34029099 - Sanitizer - Hand Sanitizer

5. Product Code - 1033 - HSN - 48181000 - Facial Tissue - Table Facial Tissue

these are the products that are dealt and these are consumables in the units located in SEZ units.

[KASTURI SETHI]

I have examined Instruction of Default List and other circulars, case laws etc. I have found no restriction on the goods mentioned by you for authorised operations in SEZ unit. For sanction of refund claim, the claimant is not to wait for clarification to be issued. Refund claim is to be sanctioned as per instructions existed on the date of sanctioning refund claim. It is claimant's right to ask for the basis of rejection of refund claim. Anyhow, refund claim cannot be rejected without issuance of SCN.

AI Summary

GST on Supplies to SEZ: Clarify Product Details for Zero-Rated Status; Challenge Refund Denial Without Show Cause Notice. A discussion on a forum addresses the issue of Goods and Services Tax (GST) on supplies from the domestic tariff area to Special Economic Zones (SEZ). A user queries about the denial of GST exemption for tissue materials supplied to SEZ units, despite having a Letter of Undertaking (LUT) and seeking a refund for unutilized IGST. Respondents suggest clarifying product details and emphasize that SEZ supplies are zero-rated, not exempt. One respondent notes that there is no restriction on such goods for authorized SEZ operations and advises the claimant to challenge the refund denial, as it cannot be rejected without a Show Cause Notice (SCN).