Applicability of GST

[saket s]

Company has SEZ unit at Vizag, AP. Company sold goods to customer at Maharashtra under merchant export sale with IGST .01%. Billed to Customer but delivery at Customs port at Maharashtra. Whether GST is applicable in this transaction?

[SIVARAMA KUMAR]

Supplies made by SEZ and billed to customer as per the instructions of Merchant exporter to the DTA is eligible to be considered as zero rated supply, and is eligible to claim refund as stated under 16(3) of the IGST Act.,provided the endorsement certificates are issued by SEZ officials for goods admitted into SEZ.

[Shilpi Jain]

Supply by SEZ to DTA is not a zero rated supply.

You have already mentioned 0.1% GST is charged. Then which other GST are you referring to?

AI Summary

Zero-rated supply treatment for SEZ merchant exports depends on endorsement certificates and IGST refund eligibility. One expert advises that supplies by an SEZ unit billed to a customer on merchant exporter instructions qualify as zero-rated supply, permitting refund under the IGST regime provided endorsement certificates are issued by SEZ officials for goods admitted into the SEZ; a contrary view maintains that SEZ-to-DTA supply is not zero-rated and questions the applicability of zero-rating where GST has been charged.