BILL TO OVERSEAS AND SHIP TO SEZ IN INDIA - GST APPLICABILITY.

[SANJEEV JADHAV]

Dear Experts,

We have received order from overseas for export. Buyer is instructed us to ship the material to SEZ unit in India. We will prepare export documents as per below:-

Bill to : Overseas party.

Ship to : SEZ unit in India.

After necessary processing, SEZ unit will export the material to overseas. We will get payment in foreign currency from overseas. Is GST will be applicable in this case ?

[KASTURI SETHI]

It is zero-rated supply. This situation conforms to Section 16 (1) of IGST Act.

[Ganeshan Kalyani]

You can export with payment of GST or withou GST under LUT. You will be eligible for refund.

[SANJEEV JADHAV]

Dear Experts, Thanks you very much for information.

AI Summary

Zero-rated supply for exports to SEZ: GST not payable when goods are billed abroad and shipped to SEZ for export.
Supply billed to an overseas buyer and shipped to a Special Economic Zone for subsequent export is treated as a zero-rated supply, and may be effected either under bond/LUT without payment of integrated tax or with payment of tax followed by eligibility for refund.