Supply to SEZ

[Kaustubh Karandikar]

XYZ Ltd. Intend to supply the goods to SEZ on payment of GST under claim for refund. In the tax invoice they need to show the GST amount for claiming the refund. However, the SEZ customer will not be paying this GST to XYZ. Under this situation what is the remedy for XYZ? Can they show Value + GST= Total Less Discount to the extent of GST amount? Or any other appropriate method?

[PAWAN KUMAR]

please supply without payment of GST under bond or letter of undertaking. No need to pay GST in such option and no refund claim arises as well.

AI Summary

Supply to SEZ without payment of GST: use a bond or letter of undertaking to avoid upfront tax payment and refund claims. Where goods supplied to an SEZ will not be paid for by the SEZ recipient, the supplier should effect the supply without payment of GST by executing a bond or letter of undertaking; this avoids paying tax upfront and eliminates the need to claim a refund, rather than invoicing GST and discounting or seeking reimbursement.