Accomodation service Supply to SEZ Unit

[NARENDER YARRAGORLA]

If a Lodge and accommodations service is provided to a unit located in SEZ, whether the supply becomes Intra or Inter state supply and Taxable or Zero Rated Supply?

[DR.MARIAPPAN GOVINDARAJAN]

In my view it is inter-State supply and attracts IGST.

[KASTURI SETHI]

It is inter-State supply and hence zero-rated but tax will be paid and refund of IGST is to be claimed.

[Shilpi Jain]

It will be a zero-rated supply - inter-State supply. THere is also a circular in this regard.

You can either opt to supply under LuT without payment of any tax or

pay IGST on this transaction and go for refund. Option 1 suggested.

[Alkesh Jani]

Shri

Please elaborate, lodging and accommodations is provided by whom and what is the location of this service provider.

Shilpi Madam is requested to provide the Circular No. and date.

The above query is for my knowledge purpose only.

Thanks

[Ravinesh Sinha]

It depends upon the lodge whether located in SEZ or else where. Location of lodge help to ascertain place of supply

AI Summary

Inter-State supply: lodging to SEZ units treated as zero-rated, with IGST refundable or LUT option available.
Lodging and accommodation supplied to an SEZ unit are treated as inter-State supply and zero-rated supply. The supplier can either export under a Letter of Undertaking without payment of tax or pay IGST and claim refund; the place of supply depends on the location of the service provider and a departmental circular is referenced.