ISD to SEZ units
Query (Issue) Started By: – LAKSHMINARAYANAN TR Dated:- 5-3-2018 Last Reply Date:- 6-3-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Hi,
Can Input services Distributor distributes credit to one of their units in SEZ? if so, how to distribute when both of them in same state? IGST or not?
Thanks in Advance.
Durai
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
According to Section 16 of IGST Act, 2017
Therefore when you supply goods or service or both to SEZ Unit or SEZ Developer you can do so as per above provisions. Therefore in my opinion you cannot distribute credit to SEZ unit or Developer.
Reply By KASTURI SETHI:
The Reply:
Also read these FAQs
Q14. How to distribute common credit amo
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ear, in reality, certainly suppliers insist SEZ units to pay the GST as they initially Had a struggle with LUT, now with refunds. We also observe that unregistered Suppliers do supply to SEZ units without GST, though technically law doesn't allow them without registration. These are the practical issues we have for SEZ units. How about supplies u/s 9(3), if the SEZ unit being the recepient, are they suppose to pay the tax, if so, can they take ITC and go for refund? Please share your thoughts.
Reply By KASTURI SETHI:
The Reply:
In my view, ISD can distribute IGST to SEZ . Regarding the remaining second query, SEZ as receiver will pay GST and get refund.
Reply By LAKSHMINARAYANAN TR:
The Reply:
Many thanks again for shedding some lig
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =