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

Is GST Applicable When Goods Are Billed Overseas but Shipped to SEZ in India? Zero-Rated Under Section 16(1) IGST Act. A query was raised regarding the applicability of GST when goods are billed to an overseas party but shipped to a Special Economic Zone (SEZ) unit in India, with the SEZ unit subsequently exporting the materials. The payment is received in foreign currency. One expert clarified that this is a zero-rated supply under Section 16(1) of the IGST Act. Another expert mentioned that exports can be made with or without GST under a Letter of Undertaking (LUT), and the exporter would be eligible for a refund. The inquirer expressed gratitude for the information provided.