Dear Sir,
As we all know u/s 16 of IGST Act, any supply made to SEZ will be Zero rated supply. In my scenario, if supplier issues IGST bill to SEZ & collect IGST from SEZ . Suppliers are showing in GSTR-1 as 'Supply to SEZ with GST' & making payment in their 3B. Accordingly SEZ is claiming that IGST as ITC.
My query is whether any issue can be raised by department again such ITC claimed by SEZ ? Is there any consent letter/documentation required to keep in record by SEZ from supplier that they are not entitled to claim refund on the same as IGST is paid by SEZ only ?
Kindly suggest....
SEZs Can Claim Input Tax Credit on IGST: Supplies Zero-Rated Under Section 16 of IGST Act A forum participant inquired about the Goods and Services Tax (GST) implications for supplies made to a Special Economic Zone (SEZ), specifically concerning the eligibility of SEZs to claim Input Tax Credit (ITC) on IGST paid. Responses clarified that SEZs can claim ITC on such supplies, as they are zero-rated under Section 16 of the IGST Act, and no disputes should arise if the tax is paid. It was also confirmed that supplies to SEZs are considered inter-State, thus CGST/SGST does not apply. Various supply options to SEZs, including payment of IGST, were discussed. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
