TAXABILITY OF SUPPLIES TO URD SEZ ENTITY AND REPORTING IN GSTR-1

[SUDHIRKUMAR SHAH]

ONE IS COMPANY HAVING ITS OFFICE IN MUNDRA SEZ. COMPANY IS REGISTERED UNDER GST ACT.

ANOTHER IS TRUST HAVING SCHOLL IN MUNDRA SEZ, NOT REGISTERED IN SEZ.

NOW, COMPANY SUPPLIES SERVICE OF RENTING IMMOVABLE PROPERTY TO SCHOOL (PROPERTY IS IN SEZ).

WHETHER SUCH SUPPLY IS TAXABLE SUPPLY B2C OR ZERO RATED SUPPLY ? YES/NO WHY?

WHERE TO REPORT SUCH TRNSACTION IN GSTR-1 IF SAME IS TREATED AS ZERO RATED SUPPLY?

AI Summary

Zero-rated supply to SEZ units may be exempt when services are for authorised operations; otherwise treated as taxable IGST supply.
Whether a registered SEZ unit's rental service to an unregistered entity in the SEZ is zero-rated depends on whether the service is an import for authorised operations under SEZ rules and whether the recipient is an authorised SEZ unit; if the exemption applies the supply is treated as exempt inter state supply to an unregistered person and reported in GSTR 1's nil rated/exempt/non GST outward supplies table (inter state supplies to unregistered persons); if not, IGST applies and the supply is taxable.