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
\nWe 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?
\nReply By KASTURI SETHI:
\nThe Reply:
\nExemption to goods imported by unit\/developer in Special Economic Zone (SEZ) for authorised operations
\nIn exercise of the powers conferred by sub-section (1) of section 25 of the Customs <\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n rters to whom you are supplying warehousing services ? = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \nReply By Hem Salgaokar: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" 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 – GSTGot 10 RepliesGSTDear 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 … Continue reading “GST Imlication on warehousing services in SEZ units”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-11917","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/11917","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11917"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/11917\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11917"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nReply By JAY SHAH:
\nThe Reply:
\nThis time importer is in gujarat.
\nMorever this time warehousing charges will be paid by exporter who is outsie india. Invoice will be made in $. And will recived the sane.
\nWhat 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.
\nReply By Nitika Aggarwal:
\nThe Reply:
\nDear Sir,
\nAs 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.
\nRelevant extract of the same is reproduced as under:-
\n"(5) Supply of goods or services or both,
\n(a) when the<\/p>\n
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\nThe Reply:
\nSEZ unit work with foreign party so thats treated as a export.
\nReply By Nitika Aggarwal:
\nThe Reply:
\nSir,
\nWhat 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
\nLocation of supplier is in India
\nLocation of recipient is in India
\nPlace of supply of aforesaid services is in India.
\nThus, the aforesaid transaction is taxable in accordance with the provisions of IGST Act, 2017.
\nSo 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<\/p>\n
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