TaxTMI 
TaxTMI 
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?
Applicability of GST
15 Mar 2023 
2 Replies 
1386 Views Asked by
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. (AI Summary)
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. (AI Summary)