Supply to SEZ
Query (Issue) Started By: – Ethirajan Parthasarathy Dated:- 3-8-2018 Last Reply Date:- 5-8-2018 Goods and Services Tax – GST
Got 4 Replies
GST
As per section 16 of IGST Act, supplies made to SEZ units & SEZ developers are treated as “zero rated supply”. But in the recent decision of AAR West Bengal in the case of Garuda Power Private Limited has ruled that :
\nThe Applicant shall be liable to pay tax when supplying to Units and Developers of Special Economic Zones subject to the provisions of section 16 of the Integrated Goods and Services Act, 2017.
\nI request to learned friends to throw light on the meaning of ruling by AAR
\nReply By Rajagopalan Ranganathan:
\nThe Reply:
\nSir,
\nSection 16 of IGST Act, 2017 stipulat<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n uards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit; or = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ecision before any authority under any provisions of the GST Act. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Supply to SEZ Query (Issue) Started By: – Ethirajan Parthasarathy Dated:- 3-8-2018 Last Reply Date:- 5-8-2018 Goods and Services Tax – GSTGot 4 RepliesGSTAs per section 16 of IGST Act, supplies made to SEZ units & SEZ developers are treated as “zero rated supply”. But in the recent decision of AAR West Bengal in the … Continue reading “Supply to SEZ”<\/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-13030","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13030","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=13030"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/13030\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13030"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13030"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13030"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n (b) he may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied,
\nin accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder.
\nThe sanction of refund will be governed by provisions of Section 54 of CGST Act, 2017 and rule 96 and 96A of CGST Rules, 2017.
\nReply By YAGAY andSUN:
\nThe Reply:
\nYou may claim refund on such paid IGST.
\nReply By ANITA BHADRA:
\nThe Reply:
\nIn re Garuda Power Private Limited (G<\/p>\n
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\nThe officer concerned raises no objection to admission of the Application.
\nSince the Applicant supplies to units and developers of Special Economic Zones only, as stated in the Application and reiterated by the authorised representative during Personal Hearing, the provisions of Section 16 of IGST Act will be applicable in this case and the tax liability will be at zero rate under sub section 1(b) of the IGST Act.
\nHe may supply without paying tax subject to the provisions under section 16 (3) (a), or he may supply on payment of tax and claim refund subsequently under section 16 (3) (b) of the IGST Act.
\nReply By DR.MARIAPPAN GOVINDARAJAN:
\nThe Reply:
\nI endorse the views of<\/p>\n
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