TaxTMI 
TaxTMI 
Supply to Sez
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....upply to Sez<br> Query (Issue) Started By: - Ashiesh Prremji Dated:- 8-5-2020 Last Reply Date:- 9-5-2020 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>Dear Sir, As we all know u/s 16 of IGST Act, any supply made to SEZ will be Zero rated supply. In my scenario, if supplier issues IGST bill to SEZ & collect IGST from SEZ . Suppliers are showing in GSTR-1 as 'Supply to SEZ with GST&qu....
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....ot; & making payment in their 3B. Accordingly SEZ is claiming that IGST as ITC. My query is whether any issue can be raised by department again such ITC claimed by SEZ ? Is there any consent letter/documentation required to keep in record by SEZ from supplier that they are not entitled to claim refund on the same as IGST is paid by SEZ only ? Kindly suggest.... Reply By YAGAY andSUN: The Reply:....
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.... Please go through the e-filer's link as issued by NASIN https://www.cbic.gov.in/resources//htdocs-cbec/gst/Refund_zero_rated_supplies.pdf Reply By Ashiesh Prremji: The Reply: Thanks for Reply Sir! Actually, in this case SEZ is not going to apply for Refund, SEZ is claiming as ITC & set-off has been done against their DTA sales in 3B. My query is only that whether in that case department....
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.... can raise any issue against such ITC claimed by SEZ ?? Reply By Mahadev R: The Reply: SEZ has the privilage of procuring goods or services at zero rate. There is no restriction that procurements cannot be on payment of tax. GST paid on procurements woudl be eligible as per section 16. Do not see any dispute here. Reply By KASTURI SETHI: The Reply: In this scenario, availing ITC is not risk-p....
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....rone at all. Reply By Ashiesh Prremji: The Reply: Thank you Sir for clearing my doubts ! One more thing i just wanted to confirm whether CGST/SGST can be availed by SEZ, if payment is also made in CGST/SGST ? Thanks, Reply By YAGAY andSUN: The Reply: There are three options available with supplier to SEZ 1) Supply with payment of IGST 2) Supply under a Bond 3) Supply under a Letter of Un....
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....dertaking Reply By KASTURI SETHI: The Reply: Q. One more thing i just wanted to confirm whether CGST/SGST can be availed by SEZ, if payment is also made in CGST/SGST ? Ans.In terms of Section 7(5) (b) of IGST Act supply to or by SEZ is inter-State supply. How the question of CGST/SGST arise ? Section 7(5) of IGST Act Supply of goods or services or both, - (5) (a) when the supplier is lo....
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....cated in India and the place of supply is outside India;  (b) to or by a Special Economic Zone developer or a Special Economic Zone unit; or  (c) in the taxable territory, not being an intra-State supply and not covered elsewhere in this section,  shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce<br> Discussion Forum - Kno....
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