Solar plant in SEZ unit

[Abhijeet Mane]

Dear Experts,

I have a client (a DTA ) who wishes to set up a solar power plant at SEZ site to supply them electrical energy but is prohibited to register is a its additional place of business. the plant will be owned and operated by my client. what implication it may face due to this restriction. also if they are not allowed to register it as its additional place of business how can they manage entry of materials necessary for installation and operation of plant at SEZ site ?

AI Summary

Separate GST registration requirement restricts treating SEZ unit as additional place; supplies treated as zero rated exports with added compliance.
A separate GST registration is mandatory for a DTA taxpayer operating a solar plant inside an SEZ, rendering the SEZ unit a distinct person with separate compliance obligations. Supplies from the DTA to the SEZ unit are taxable inter unit supplies but may be zero rated for authorized operations, requiring export style procedures for material entry and reliance on input tax credit or refund mechanisms.