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Issue ID : 115548
- 0 -

SEZ sale to EOU unit

Date 19 Oct 2019
Replies4 Answers
Views 5473 Views
Asked By

Dear Sir,

A SEZ unit executed BLUT (Bond cum LUT) with Development Commissioner. Now this unit has to sale goods to an EOU.So could clarify the below :-

1. Is this sale treated as DTA sale or export ?

2. IGST is applicable or not ?

Your quick reply will help us.

Thank you

Rajan

4 answers
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- 0
Replied on Oct 20, 2019
1.

1. Sale from SEZ unit to EOU is deemed import. Section 53 of the SEZ Act, 2005 provides that the Special Economic Zone shall be deemed outside the Customs territory of India for the purpose of undertaking the authorized operations.Hence, the goods cleared from SEZ to DTA, is deemed import to India and is exigible to Customs duty under Customs Tariff Act, 1975, which includes IGST. Section 3(7) of the said Act placed below :-

Section 3(7) of Customs Tariff Act provides that “any article which is imported into India shall, in addition, be liable to Integrated Tax at such rate, not exceeding forty per cent. as is leviable under Section 5 of the Integrated Goods and Services Tax Act, 2017 on a like article on its supply in India, on the value of the imported article as determined under sub-section (8).

- 0
Replied on Oct 20, 2019
2.

Sir

Thank you for your clarification

- 0
Replied on Oct 20, 2019
3.

Additional information linked to your reply

EOU is like any other supplier under GST and all the provisions of the GST Acts will apply. The benefit of Basic Customs Duty exemption on imports is available to EOU.

- 0
Replied on Oct 26, 2019
4.

Sir,

Supply from SEZ to DTA is termed as " Sales in DTA"

Buyer in DTA or SEZ unit on behalf of DTA shall file bill of entry with SEZ Customs

Customs duty/ Restrictions/ conditions as applicable to notmal import will apply

Thanks

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