Filing of GSTR 1 & GSTR 3B by an SEZ unit

[RAMNIRANJAN KANDOI]

What are the procedures and conditions to be followed while filing GSTR-1 & GSTR 3B by an SEZ unit. Your detailed reply will be highly appreciated.

[CASeetharaman KC]

In case of SEZ units the supplies made would be primarily exports which are covered under zero rated supply under Section 16 of the IGST Act, 2017. Only Domestic supplies would be subject to IGST as per the rate applicable to the goods sold. GSTR 1 and GSTR 3B would have to be filled accordingly.

[Shilpi Jain]

The domestic supply made by sez not to be reported by sez in returns

[CA Hemanth Kumar]

Dear Sir,

1. For supply of goods:

a. If treated as imports and SB is filed - No need to report or pay tax in GSTR-1 and GSTR-3B.

b. If not treated as imports and SB is not filed (mostly for scrap) - need to issue a sale invoice , disclose as B2B or B2C and pay tax in GSTR-3B.

2. For supply of Services: It will be treated as regular supplies made which needs to be reported in GSTR-1 and pay tax in GSTR-3B.

3. For RCM liabilities.

No clear exemption provided (still can be contested). Thereby to avoid dispute, pay tax and claim credit being a revenue neutral situation

AI Summary

Zero-rated supply treatment for SEZ units determines GSTR 1/GSTR 3B reporting and tax liability on domestic supplies. SEZ units' exports are zero-rated supply under IGST Section 16 and treated accordingly in returns; domestic supplies are taxable and must be reported in GSTR 1 and taxed in GSTR 3B. For goods treated as imports with a Shipping Bill there is no reporting or tax in GSTR 1/GSTR 3B; goods not treated as imports require a sale invoice, B2B/B2C classification, reporting and tax payment. Services from SEZ units are regular taxable supplies to be reported in GSTR 1 and taxed in GSTR 3B. Reverse charge liabilities are unsettled; paying tax and claiming credit is a cautious, revenue neutral approach.