TMI BlogSpecial Economic Zone (SEZ)X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices or both are supplied to SEZ unit? Ans. Supplies to SEZ unit or developer are considered as zero rated. As such, the supplier can choose to either supply on payment of IGST and claim refund or supply without payment of IGST and in that scenario can only claim the refund of unutilized ITC, if any. The IGST rates when supplying goods and services to SEZ unit on payment of tax and taking refund route, will be as per rate Notifications No. 01 , 02 and 03/2017-Integrated Tax (Rate) dated 28.06.2017 (for goods) and rate Notifications No. 08 and 09/2017 dated 28.06.2017 (for Services) as amended from time to time. Q 40. An SEZ unit in Mumbai avails hotel accommodation in Goa. Whether such supply is intra-state or inter-s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ized ITC Option I: Supply goods or services or both to SEZ unit or developer on payment of Integrated tax and claim refund The supplier has to follow the procedure outlined in rule 89 of the CGST Rules, 2017 . The refund in respect of supplies to a SEZ unit or a SEZ developer, the application for refund shall be filed by the (a) supplier of goods after such goods have been admitted in full in the Special Economic Zone for authorised operations , as endorsed by the specified officer of the Zone; (b) supplier of services along with such evidence regarding receipt of services for authorised operations as endorsed by the specified officer of the Zone The refund application in form GST RFD-01 shall be a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the jurisdictional Commissioner, binding himself to pay the tax due along with the interest specified under sub-section (1) of section 50 within a period of - (a) fifteen days after the expiry of three months, or such further period as may be allowed by the Commissioner,] from the date of issue of the invoice for export, if the goods are not exported out of India; or (b) fifteen days after the expiry of one year, or such further period as may be allowed by the Commissioner, from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange. Q 43. Whether a DTA supplier has to furnish a Bond or LUT while supplying goods/services without payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of exempted /non-GST goods? Ans. In case of zero rated supply of exempted or non-GST goods, the requirement for furnishing a bond or LUT cannot be insisted upon. In this regard, the circular no. 45/19/2018-Central Tax dated 30-05-2018 clarifies that in respect of refund claims on account of export of non-GST and exempted goods without payment of integrated tax, LUT/bond is not required Q 47. If a DTA supplier is supplying the goods to SEZ unit without payment of integrated tax what will the taxable value as per the format prescribed for SEZ supply? Ans. The taxable value will be the invoice value of the goods supplied to the SEZ unit. Q 48. Whether Bank as a nominated agency in the non-processing area of SEZ will be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above supply should be intra state supply, it is an established principle of interpretation of statutes that in case of an apparent conflict between two provisions, the specific provision shall prevail over the general provision. Section 7(5)(b) of the IGST Act is a specific provision relating to supplies of goods or services or both made to a SEZ developer or a SEZ unit, which states that such supplies shall be treated as inter-State supplies. Therefore, the 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. ( CBIC Circular No. 48/22/2018- GST dated 14th June, 2018 ) Q 52. Whether the benefit of zero rated supply can be a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecial Economic Zone in the same State or Union territory. Q 54. Whether a SEZ unit or SEZ developer procure any goods or services from an unregistered supplier, and whether these will be zero rated supplies? Ans. Supplies to SEZ unit or SEZ developer have been accorded the status of inter-State supplies under the IGST Act . Under the GST Law, any supplier making inter-State supplies has to compulsorily get registered under GST. Thus anyone making a supply to a SEZ unit or SEZ developer has to necessarily obtain GST registration. Q 55. Whether SEZ Act/Rules are aligned with the GST? Ans. SEZ Rules, 2006 have been synced with the GST Provisions vide SEZ (Amendment) Rules, 2018. The terms like Service Tax, Stamp Duty etc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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