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

Debate on SEZ to DTA Sales: Are Supplies Zero-Rated and Eligible for IGST Refund? A company with a Special Economic Zone (SEZ) unit in Vizag, Andhra Pradesh, sold goods to a customer in Maharashtra under a merchant export sale, charging an Integrated Goods and Services Tax (IGST) of 0.1%. The goods were billed to the customer but delivered at the Maharashtra customs port. One response indicated that such supplies from SEZ to Domestic Tariff Area (DTA) may be considered zero-rated and eligible for a refund under the IGST Act, given proper endorsements. Another response disagreed, stating that SEZ to DTA supplies are not zero-rated, questioning the reference to other GST charges.