GST on reverse charge on GTA in respect of supply to SEZ units.
Query (Issue) Started By: – HARISH RADHAKRISHNAN Dated:- 25-7-2018 Last Reply Date:- 25-7-2018 Goods and Services Tax – GST
Got 4 Replies
GST
I am a unit in the SEZ and I have received goods in the SEZ through the local transport bill is more than rs 1500. I am now supposed to pay tax on reverse charge basis on the GTA charges.
As an SEZ I am eligible for an exemption from tax as the supply to SEZ is ZERO RATED for which the Service provider i.e. transport operator in this case should execute a bond for claiming the exemption.
However in terms of the RCM procedure the SEZ unit is the service provider hence this is a case of supply of service to yourself and the
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or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.”
From above it is clear that, SEZ unit or a Developer is the person liable for paying tax and all the provisions of the Act shall be applicable to SEZ unit or Developer. Therefore, in the instant case, you are required to obtain LUT or pay the tax and apply for refund.
Further, the SEZ Bond cum LUT, executed by you is under the SEZ Act and Customs Act. Therefore, in my point of view, it cannot be said that provisions of GST Act are adhered.
Any alterna
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