Question ID : 40380

GST Applicability to SEZ unit

If an SEZ unit is availing certain services outside SEZ area. Will this services will be eligible for Zero rated supply benefit under IGST Act.

Answer ID : 80164

Supply by SEZ unit to Domestic Tariff Area, can be categorised into Supply of goods of Supply of Services. a) Supply of Service: SEZ unit will raise Tax invoice, charge IGST. b) Supply of goods: i) It shall be treated as exports and DTA vendor needs to clear the goods from SEZ jurisdictional offices pay BCD and IGST. SEZ unit shall raise bill of supply invoice without any gst however they should mention the details of bill of entry etc in the bill of supply invoice. ii) Alternatively if SEZ unit itself clears the goods from SEZ jurisdiction then they need to pay BCD and IGST, and raise tax invoice to DTA vendor with GST.

Answer ID : 80165

There is no bar in an SEZ unit going outside the zone to avail services. It would still be zero-rated if these services are used in authorized operations of SEZ unit. But, please examine whether (a) the 'place of supply' of these is legally specified to be inside the zone even though it is performed outside the zone (b) if these services are 'entered' for authorized operations or not and (c) are these services used in SEZs activities (or used in other activities of the entity that operates the SEZ unit). If answer is 'no' to all of the above, then it the inward supplies would NOT be zero-rated. In fact, there is a further risk that this entity may have non-SEZ transactions which needs to be examined in greater detail as to the end-purpose of such transactions.

Answer ID : 80166

Considering that services must be obtained for authorised operation, if the answer is affirmative, a refund can be filed within 2 years from the date of invoice. Section 54 read with Explanation 2(g) read with Rule 84 Hope this suffices. Further, the GSTIN must have been quoted by the supplier of services.

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