TaxTMI 
TaxTMI 
Issue in Advances received from SEZ Developer: IGST Not Computed on Advance Received from SEZ Developer Located in Same State
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....ssue in Advances received from SEZ Developer: IGST Not Computed on Advance Received from SEZ Developer Located in Same State<br> Query (Issue) Started By: - Deepanshu Garg Dated:- 11-6-2025 Last Reply Date:- 11-6-2025 Goods and Services Tax - GST<br>Got 1 Reply<br>GST<br>Hi All I am writing to seek clarification and assistance regarding a technical issue faced while filing Form GSTR-1. We are a ....
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....DTA unit registered in Gujarat, engaged in the provision of taxable services to a SEZ Developer, also located in Gujarat, with payment of tax. In accordance with the IGST Act, 2017, the supply of goods or services to a SEZ unit or developer is treated as an inter-State supply, even if the location of the supplier and recipient is in the same State. We have received an advance from the SEZ Develop....
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....er, on which tax liability arises. Accordingly, we are reporting this advance under the 'Advance Received' tab of Form GSTR-1. However, the GST portal is mandating the selection of POS. Since the recipient SEZ Developer is located in Gujarat, we selected 24-Gujarat as the POS. Upon doing so, the portal is automatically computing CGST + SGST, treating it as an intra-State supply, which as per my p....
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....ersonal opinion and knowledge is incorrect in this context. As per the IGST Act provisions, this transaction should attract IGST, being a deemed inter-State supply to a SEZ Developer. Request for Clarification: How should we report the advance received from the SEZ Developer in GSTR-1 so that the system correctly identifies it as an inter-State supply and computes IGST, despite both parties bei....
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....ng located in Gujarat? Is there any specific workaround or procedure recommended by the GSTN or CBIC for such scenarios? We request your kind guidance in resolving this issue at the earliest, as it is resulting in incorrect tax computation and potential compliance challenges. Thank for your support in advance Reply By RaamSrinivasan Kalpathi: The Reply: Kindly report place of supply as "Other....
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.... Territory". Thanks<br> Discussion Forum - Knowledge Sharing ....