TaxTMI 
TaxTMI 
Dear Sir,
SEZ made Sale to Merchant Exporter. Who has to pay GST on it. SEZ Unit or Buyer from SEZ unit.
SEZ Made sale to Merchant Exporter 0.1% Sales - Who has to pay tax
23 Oct 2019 
2 Replies 
4826 Views Asked by
Inter-state supply treatment applies to SEZ sales, shifting GST incidence to the importer/DTA and enabling IGST refund.
Notification No. 40/2017-Rates does not apply to supplies by SEZ units because it covers intra state supplies, while supplies to or by an SEZ are inter state under Section 7(5)(b) IGST. Supplies from an SEZ to a DTA unit are treated as imports governed by the SEZ Act; the DTA importer discharges IGST on import, may quote the relevant inter state exemption notification where applicable, and can claim refund of IGST when the goods are exported. (AI Summary)
Notification No. 40/2017-Rates does not apply to supplies by SEZ units because it covers intra state supplies, while supplies to or by an SEZ are inter state under Section 7(5)(b) IGST. Supplies from an SEZ to a DTA unit are treated as imports governed by the SEZ Act; the DTA importer discharges IGST on import, may quote the relevant inter state exemption notification where applicable, and can claim refund of IGST when the goods are exported. (AI Summary)