SEZ / EOU - refund of unutilised itc

[Ramakrishna Malapaka]

Respectable friends,

please clarify the below queries..

A). Whether Unutilised CgSt /Sgst Credit balance earned on capital goods of a take over company can claim refund after its conversion in to SEZ or EOU?

B). For any reason if it is not possible, can SEZ or EOU unit pay IGST on export of goods and claim refund? Under sec 54 / Rule 96(10) ?

Are there any restrictions to the same ?

Regards

Ramakrishna

AI Summary

Zero-rated supplies to SEZ/EOU require IGST treatment; CGST/SGST credit balances cannot be transferred to SEZ registration.
Unutilised CGST/SGST credits on capital goods cannot be transferred to an SEZ/EOU because SEZ units require separate registration and supplies involving SEZs attract IGST, not CGST/SGST. Exports to SEZ/EOU are zero-rated under the IGST framework, allowing domestic suppliers to issue zero-rated invoices by furnishing a Letter of Undertaking; hence exporting without IGST to preserve or obtain refund of CGST/SGST credits is not consistent with the statutory scheme. Administrative portal differences and authorised-operations requirements may affect practical implementation.