GST Imlication on warehousing services in SEZ units
Query (Issue) Started By: – JAY SHAH Dated:- 24-5-2018 Last Reply Date:- 25-5-2018 Goods and Services Tax – GST
Got 10 Replies
GST
Dear Sirs
We are SEZ units and having warehouse in SEZ Area. we have store the cargo of one of our client who is outside india. This cargo is imported into india and will be handed over to CHA. Invoicing and receipt of the same are in foreign currency. is warehousing service taxable or to be considered as a export/zero rated?
Reply By KASTURI SETHI:
The Reply:
Exemption to goods imported by unit/developer in Special Economic Zone (SEZ) for authorised operations
In exercise of the powers conferred by sub-section (1) of section 25 of the Customs
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rters to whom you are supplying warehousing services ?
Reply By JAY SHAH:
The Reply:
This time importer is in gujarat.
Morever this time warehousing charges will be paid by exporter who is outsie india. Invoice will be made in $. And will recived the sane.
What is implication of gst in both case. If paid by importer in india or paid by exporter who are outside india. Kindly note We are SEZ units.
Reply By Nitika Aggarwal:
The Reply:
Dear Sir,
As per the facts briefed to us, the warehousing services provided by SEZ units to the importers located in India are exigible to tax in terms of section 7(5)(b) of IGST Act, 2017.
Relevant extract of the same is reproduced as under:-
"(5) Supply of goods or services or both,
(a) when the
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Reply By Hem Salgaokar:
The Reply:
SEZ unit work with foreign party so thats treated as a export.
Reply By Nitika Aggarwal:
The Reply:
Sir,
What matters in the transaction is to whom the services has been provided. As per the facts briefed, since services has been provided to the person located in India i.e. Importer, This means
Location of supplier is in India
Location of recipient is in India
Place of supply of aforesaid services is in India.
Thus, the aforesaid transaction is taxable in accordance with the provisions of IGST Act, 2017.
So far as transaction is taxable, receiving of consideration either in INR or foreign exchange is immaterial and inconsequential. In any case it shall not be treated as export, as for the purpose
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