GST on Supply in SEZ in case of Bill to Ship to transactions

[Mehul Pandya]

A got contract from SEZ unit for supply and erection of factory shed within SEZ area. A gives sub contract to B. Both A and B located outside SEZ area. Now the query is A wants B to Supply goods and services directly into SEZ area using Bill to Ship to Transactions without payment of IGST under zero rated supply.

So whether is it possible according to GST law for B to supply to A as Consignee and Delivery at SEZ unit without payment of IGST ?? or B have to pay CGST - SGST.

AI Summary

Bill-to-ship-to transactions: subcontractor supplying into SEZ generally cannot avoid IGST; main contractor must account or rely on LUT.
The forum concludes that "bill to - ship to" does not generally convert subcontractor deliveries into zero-rated supplies to an SEZ; such transactions are treated as inter-State supply with the main contractor bearing the IGST obligation because the subcontractor is viewed as acting for the main contractor. A contrary submission notes that if the contract expressly permits the subcontractor to supply directly to the SEZ unit and the work is within authorized SEZ operations, the subcontractor may supply on a Letter of Undertaking (LUT) without charging IGST.