Reverse charge on SEZ units
Query (Issue) Started By: – Yugank Goel Dated:- 31-5-2018 Last Reply Date:- 6-2-2019 Goods and Services Tax – GST
Got 12 Replies
GST
Whether reverse charge is applicable for advocate services rendered to SEZ Units?
\nIf yes, then what about the amount paid under reverse charge? Can we claim refund for the same?
\nPlease clarify…
\nReply By Alkesh Jani:
\nThe Reply:
\nSir,
\nThere 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.
\nSecond 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).\n<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n of services” means the supply of any service, where = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n a zero-rated supply is eligible to claim GST refund in accordance with the provisions of the CGST Act, 2017. The two options are mentioned below: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n eply: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Reverse charge on SEZ units Query (Issue) Started By: – Yugank Goel Dated:- 31-5-2018 Last Reply Date:- 6-2-2019 Goods and Services Tax – GSTGot 12 RepliesGSTWhether 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? … Continue reading “Reverse charge on 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-11998","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/11998","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=11998"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/11998\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11998"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n (i) the supplier of service is located outside India;
\n (ii) the recipient of service is located in India; and
\n (iii) the place of supply of service is in India;”
\nFurther, inter-state supply in terms of Section 7 (5) of IGST Act, 2017 is as under:-
\n“7. (5) Supply of goods or services or both,
\n(a) when the supplier is located in India and the place of supply is outside India;
\n(b) to or by a Special Economic Zone developer or a Special Economic Zone unit; or
\n(c) in the taxable territory, not being an intra-State supply and not covered elsewhere in this section,
\nshall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce”.
\nOn going through above, I am still of the view that SEZ unit is liable to pay GST on reverse charge basis.
\nOur experts may correct me if mistaken.
\nWith Regards
\nReply By Rajagopalan Ranganathan:
\nThe Reply:
\nSir,
\nYour points are correct as per the GST Law. Ho<\/p>\n
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\n * 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
\n * Supply of goods or services with payment of integrated tax and claim of GST refund on tax paid.
\nReply By KASTURI SETHI:
\nThe Reply:
\nGST not payable. Refund eligible. Rightly advised by both experts.
\nReply By Alkesh Jani:
\nThe Reply:
\nSir,
\nOn 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.
\nThe export of service has been defined at Section 2(6) of IGST Act, 2017, which is as under:-
\n“(6) “export of services”<\/p>\n
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\nAdvocate need not worry about liability as it is liable in recipient's hand. SEZ could take a view that it is zero rated supply to avoid paying tax. if does not want to debate, then SEZ better pay tax and claim refund.
\nReply By Lakshminarayanan TR:
\nThe Reply:
\nBy 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.
\nReply By LDRaj &CO:
\nThe Reply:
\nGuess, 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?
\nThere were case laws I beleive in the past where SEZ over rules other <\/p>\n
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