Clearance to SEZ Units or AA license

[Anish Goyal]

Sir,

We are a private bonded warehouse registered under MOOWR, 2019. We supply to SEZ units or against AA license which are deemed export under GST. Whether we are require to pay BCD and IGST on inputs contained in finished goods supplied to SEZ or against AA? or it will be treated as exports and no need for payment of BCD and IGST.

AI Summary

Private Bonded Warehouses: No BCD/IGST on SEZ Supplies per IGST Act Sec 16(1)(b); Required for Advance Authorization. A private bonded warehouse registered under MOOWR, 2019, inquires if they need to pay Basic Customs Duty (BCD) and Integrated Goods and Services Tax (IGST) on raw materials imported when supplying finished goods to Special Economic Zone (SEZ) units or under an Advance Authorization (AA) license. Responses clarify that supplies to SEZ are zero-rated under Section 16(1)(b) of the IGST Act, 2017, and considered exports, hence not subject to BCD and IGST. However, supplies under AA are deemed domestic, requiring payment of BCD and IGST. Legal backing and definitions from relevant acts were discussed to clarify these positions.