TaxTMI 
TaxTMI 
XYZ is having a ‘Sweets and Namkeen’ shop. They supply these items to the SEZ unit either by 1) delivering these items to SEZ unit by their own tempo or 2) a representative of SEZ unit is coming to the shop and personally collecting the items. Under both the situations, the invoice is issued by XYZ in the name and address of the SEZ unit. Can XYZ supply these items to SEZ unit without payment of GST under LUT under both the situations?
Supply to SEZ
11 Nov 2019 
4 Replies 
2278 Views Asked by
Zero-rated supply to SEZ units: retail supplies like snacks may be taxable absent proof of authorized SEZ use.
Whether supplies of sweets and namkeen to an SEZ unit qualify as zero-rated supply hinges on the supplier proving the goods are for authorized SEZ use or in the course of/for the furtherance of business; precedent on retail-type supplies to SEZ vending machines disfavors zero-rating, and SEZ tax exemptions apply only to goods for authorized purpose subject to export obligations and NFE. (AI Summary)
Whether supplies of sweets and namkeen to an SEZ unit qualify as zero-rated supply hinges on the supplier proving the goods are for authorized SEZ use or in the course of/for the furtherance of business; precedent on retail-type supplies to SEZ vending machines disfavors zero-rating, and SEZ tax exemptions apply only to goods for authorized purpose subject to export obligations and NFE. (AI Summary)