Clarifications of certain issues under GST related to SEZ and refund of unutilized ITC for job workers.
35\/2018 Dated:- 17-9-2018 West Bengal SGST
GST – States
GOVERNMENT OF WEST BENGAL
\nDIRECTORATE OF COMMERCIAL TAXES
\n14, BELIAGHATA ROAD, KOLKATA-700015
\nTRADE CIRCULAR No. 35\/2018 (Circular No. 48\/22\/2018-GST)
\nDATED: 17.09.2018
\nSubject: Clarifications of certain issues under GST related to SEZ and refund of unutilized ITC for job workers.
\nRepresentations have been received seeking clarification on certain issues under the GST laws. The same have been examined and the clarifications on the same are as below:
\nSl.No.
\nIssue
\nClarification
\n1.
\nWhether services of short-term accommodation, conferencing, banqueting etc. provided to a Special Economic Zone (SEZ) developer or a SEZ unit should be treated as an inter State supply (under section 7(5)(b) of the IGST Act, 2017) or an intra-State supply (under section 12(3)(c) of the IGST Act, 2017)?
\n1.1 As per section 7(5) (b) of <\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n t, which states that such supplies shall be treated as inter-State supplies. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ived by a SEZ developer or a SEZ unit for authorised operations, as endorsed by the specified officer of the Zone, the benefit of zero rated supply shall be available in such cases to the supplier. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Clarifications of certain issues under GST related to SEZ and refund of unutilized ITC for job workers.35\/2018 Dated:- 17-9-2018 West Bengal SGSTGST – StatesGOVERNMENT OF WEST BENGAL DIRECTORATE OF COMMERCIAL TAXES 14, BELIAGHATA ROAD, KOLKATA-700015 TRADE CIRCULAR No. 35\/2018 (Circular No. 48\/22\/2018-GST) DATED: 17.09.2018 Subject: Clarifications of certain issues under GST related to SEZ and … Continue reading “Clarifications of certain issues under GST related to SEZ and refund of unutilized ITC for job workers.”<\/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-14138","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14138","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=14138"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14138\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n1.4 It is therefore, clarified that services of short term accommodation, conferencing, banqueting etc., provided to a SEZ developer or a SEZ unit shall be treated as an inter-State supply.
\n2.
\nWhether the benefit of zero rated supply can be allowed to all procurements by a SEZ developer or a SEZ unit such as event management services, hotel and accommodation services, consumables etc?
\n2.1 As per section 16(1) of the IGST Act, “zero rated supplies” means supplies of goods or services or both to a SEZ developer or a SEZ unit. Whereas, section 16(3) of the IGST Act provides for refund to a registered person making zero rated supplies under bond\/LUT or on payment of integrated tax, subject to such conditions, safeguards and procedure as may be prescribed. Further, as per the second proviso to rule 89(1) of the West Bengal Goods and Services Tax Rules, 2017 (WBGST Rules in short), in respect of supplies to a SE<\/p>\n
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\n3.
\nWhether independent fabric processors (job workers) in the textile sector supplying job work services are eligible for refund of unutilized input tax credit on account of inverted duty structure under section 54(3) of the WBGST Act, 2017, even if the goods (fabrics) supplied are covered under notification No. 1129-F.T. [05\/2017-State Tax (Rate)], dated 28.06.2017?
\n3.1 Notification No. 1129-F.T. [05\/2017-State Tax (Rate)], dated 28.06.2017 specifies the goods in respect of which refund of unutilized input tax credit (ITC) on account of inverted duty structure under section 54(3) of the WBGST Act shall not be allowed where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies of such goods. However, in case of fabric processor<\/p>\n
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