GST – Started By: – Yugank Goel – Dated:- 31-5-2018 Last Replied Date:- 6-2-2019 – Whether reverse charge is applicable for advocate services rendered to SEZ Units?If yes, then what about the amount paid under reverse charge? Can we claim refund for the same?Please clarify… – Reply By Alkesh Jani – The Reply = Sir, There are two type of reverse charge scenarios provided in GST. First is with regards to nature of supply and/or nature of supplier. This scenario is covered by section 9 (3) of the CGST Act, 2017 (refer Notification No.13/2017-CT (Rates) dated 28.06.2017 as amended from time to time. Second scenario is covered by section 9 (4) of the CGST Act, 2017. However, all categories of registered persons are exempted from the provisions of reverse charge under 9(4) of CGST Act, 2017 / section 5(4) of IGST Act, 2017, till 31.06.2018 (Notification No. 10/2018-CT (Rates) dated 23.03.2018). Based on above, I am of the view that even SEZ unit is required to pay tax under RCM for the le
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ndia; (ii) the recipient of service is located in India; and (iii) the place of supply of service is in India; Further, inter-state supply in terms of Section 7 (5) of IGST Act, 2017 is as under:- 7. (5) Supply of goods or services or both,- (a) when the supplier is located 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 . On going through above, I am still of the view that SEZ unit is liable to pay GST on reverse charge basis. Our experts may correct me if mistaken. With Regards – Reply By Rajagopalan Ranganathan – The Reply = Sir,Your points are correct as per the GST Law. However Government has issued a notification exempting IGST payable on services received by SEZ unit or developer for a
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ions are mentioned below: Supply of goods or services under Bond or Letter of Undertaking without payment of integrated tax and claim refund of unutilised input tax credit of CGST, SGST / UTGST and IGST; or Supply of goods or services with payment of integrated tax and claim of GST refund on tax paid. – Reply By KASTURI SETHI – The Reply = GST not payable. Refund eligible. Rightly advised by both experts. – Reply By Alkesh Jani – The Reply = Sir, On going through the views expressed by our experts in the instant case, it can be said that an Advocate is required to obtain registration and service rendered to SEZ considering as export of service either on payment of IGST or under LUT and then claim refund of IGST paid, if any. Sorry I defer. The export of service has been defined at Section 2(6) of IGST Act, 2017, which is as under:- (6) export of services means the supply of any service when,- (i) the supplier of service is located in India; (ii) the recipient of service is located outs
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o avoid paying tax. if does not want to debate, then SEZ better pay tax and claim refund. – Reply By Lakshminarayanan TR – The Reply = By and Large, I echo the views of Alkesh Jani. SEZ is subject to 9(3), should discharge the tax and can go for refund of unutilised ITC on exports made with or without payment( both options available under refund scenarios). Notification no 18, applies only wrt to direct imports. Imports of services here only mean supplier located outside India so not applicable in case of an Advocate located in india. – Reply By LDRaj &CO – The Reply = Guess, we need to re-open this topic in light of recent amendment of SEZ rules 2006. As per SEZ act, procure from DTA is an import. Question is does SEZ overrule IGST for payment of RCM for advocate or GTA services? There were case laws I beleive in the past where SEZ over rules other acts like VAT – Reply By Shashank Tolwani – The Reply = Not applicable in light of clarification issued by the department via F No 334/335
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