TaxTMI 
TaxTMI 
Export from SEZ
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....xport from SEZ<br> Query (Issue) Started By: - SHARAD ANADA Dated:- 27-4-2020 Last Reply Date:- 3-5-2020 Goods and Services Tax - GST<br>Got 11 Replies<br>GST<br>Registered person of Ahmedabad (Gujarat) place an order to SEZ unit in Kandala (Gujarat). Ahmedabad person without bringing goods to Ahmedabad directly export goods to his customer out side India. So he has not filied Bill of Entry for ho....
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....me consumption. What will be GST implication in transaction between Ahmedabad unit and SEZ unit. Reply By PAWAN KUMAR: The Reply: It will be as zero rated supply and gst invoice to issue mentioning sez as manufacturer. Documents shall be jointly signed. Reply By KASTURI SETHI: The Reply: As per the query, the goods in question stand exported. Hence zero rated supply. I agree with Sh.Pawan Kum....
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....ar Ji. Does any relationship exist between Ahmedabad unit and SEZ Unit ? If so, whether GST is applicable ? If SEZ unit has acted for and on behalf of Ahmedabad unit and if SEZ unit has received consideration in any form from Ahmedabad unit for facilitating it (Ahmedabad unit) for direct export from the premises of SEZ unit to its client located outside India, it will be considered as deemed i....
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....mport of service and Ahmedabad unit will pay IGST under RCM. This is my view. Reply By PAWAN KUMAR: The Reply: Sir as per my view, rcm will not applicable. It is a supply from sez to dta and on behalf of dta unit, physical export is being done by sez unit directly from his premises. Detailed procedure already prescribed by dgft in a policy circular dates 22 feb 2019, issued for claiming benefit....
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....s of meis scheme, in case of similar transactions. Reply By KASTURI SETHI: The Reply: Sh.Pawan Kumar Ji, After re-examination of the issue, I agree with you. Reply By SHARAD ANADA: The Reply: Thank you all the experts for your valuable guidance. Reply By CSSANJAY MALHOTRA: The Reply: Dear Sharad, Ahemdabad person made purchases from SEZ, which is liable to duties as applicable to import.....
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.... Rest is secondary whether Ahemdabad person takes delivery of goods at his premises or to save logistics cost moves goods directly from sez place to port for further export to his customer. I think that Sh Kasturi ji tried to figure out same initially but reverted to secondary aspect ( supply by Ahemdabad to overseas customer) which is rightly covered as zero rated supply. But initial transacti....
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....on of purchase of goods by Ahemdabad person from SEZ has to be moved under bill of entry with taxes duly paid. Ensure compliance as without purchase you can't make supply and import duties will be recovered with interest and penal action. Reply By KASTURI SETHI: The Reply: Sh. Sanjay Malhotra Ji, Sir, Thanks a lot for enlightenment. Reply By Ganeshan Kalyani: The Reply: Welcome Sri Sanj....
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....ay Sir. Reply By YAGAY andSUN: The Reply: In our view, No GST will be applicable because No Bill of Entry was filed and goods were not removed from SEZ to DTA. Order was placed for exporting of goods out of India only, from SEZ unit. It would also be important to check who received foreign payments from the foreign customer. Registered person can be treated as Commission Agent who procures orde....
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....rs or as a Merchant Exporter. Reply By CSSANJAY MALHOTRA: The Reply: Queriest has not stated that Bill of export has been filed at custom office of SEZ against DTA invoice. In absence of same, B/E is required. Reply By CSSANJAY MALHOTRA: The Reply: Please read phrase at Sr. No. 10 as "Shipping Bill" instead of "Bill of Export" [Refer Section 51 of SEZ Act, which is reproduc....
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....ed below] Section 51 of SEZ Act: Act to have overriding effect (1) The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act.<br> Discussion Forum - Knowledge Sharing ....