As per the IGST Law, supplies of goods and services to or by Special Economic Zone (SEZ) units or SEZ developers will be treated as inter-State supplies. As per the SEZ Act, supply of goods from SEZs are treated as import of goods into India. Accordingly Basic Customs Duty (BCD) & Integrated GST will be levied on such supplies from SEZ units and SEZ developers into DTA.

Supplies of goods and/or services to SEZ units or SEZ developers are to be treated as “zero rated supplies” and the SEZ developer or SEZ unit receiving such zero rated supplies will be given similar treatment as exports (please refer next question for details).

Draft Registration Rules make it mandatory for a SEZ unit or SEZ developer to obtain separate registration as a business vertical distinct from its other units located outside the SEZ.

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Qualification: CA in Job / Business
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20 responses to “GST: Treatment of supplies to and by SEZ units/SEZ developers”

  1. suresh says:

    are exempted IGST & Compensation Cess Rs.400/- per ton of imported Coal for SEZ units on STOCK AND SALE BASIS?
    Please confirm ?

  2. CA Girish R Dalwadi says:

    what if GTA provides transportation service to SEZ.
    what will be tax provision.
    keep in Mind GTA covered under reverse charge.

  3. Madhukeshwara Gowda K C says:

    If , we charge IGST on supplies made to SEZ unit , the SEZ unit have an option to claim input tax credit?

  4. yuvaraj says:

    i have received duty paid material form DTA unit .
    Here the unit are same state are different , inter-transfer form DTA unit to SEZ unit.
    if there is any IGST for inter transfer?

  5. KIRAN says:

    WE SUPPLIED TO SEZ ( KAKKANAD-KERALA),
    FROM KERALA-THRISSUR. THEN WHICH IS THE PLACE OF SUPPLY IN OUR SIDE IF WE ARE SHOWING THAT AS A INTERSTATE SALE.

  6. kushal says:

    what is the use of these postings ,if none of the problems are recognised and replied.

  7. Nagesh says:

    Dear Sir,
    Shall we issue the Bill of Export for Duty Free of Goods & Service for SEZ, Please confirm.

  8. Baikunthanath Mohapatra. says:

    We are unit located in SEZ.We are procuring raw materials from a Govt. undertaking corporation of another state,They are demanding to pay GST.How can we reimburse the payment.

  9. swathi andoju says:

    SUPPLY BY SEZ DEVELOPER TO SEZ UNITS. DOES LUT OR BOND NEED TO TAKEN FOR TAX EXEMPTION

  10. Vasu says:

    Sir, I am an electrical goods supplier, if I Supply the goods to a SEZ unit should I raise the GST invoice with zero % tax please clarify.

  11. Solomon says:

    We are supplying Coffee and Tea to an Unit located in SEZ. Under GST should we raise our invoices at Zero rate or should we charge them IGST at 18 %. Our client says that we should raise invoice at zero rate as the supplies are made to an unit in SEZ. Please clarify

  12. H.R. Sreepada, Cost Accountant says:

    Supplies by a DTA Unit to SEZ unit or SEZ Developer can be made with 0% IGST, provided LUT or Bond is executed (Refer Customs Circular No.26/2017, Central Tax Notification No.16/2017 dtd. 07.07.17, CBEC Circular No.4/4/2017 dtd. 07.07.17. If LUT or Bond are not executed, supplies can be made by charging IGST also. In case supplies are made without charging IGST against LUT/Bond, the supplier can claim refund of proportionate ITC, In case the supplies are made with payment of IGST, IGST so paid can be claimed as refund. In the Invoice appropriate declaration shall be made as per Rule 46 – “SUPPLY MEANT FOR EXPORT ON PAYMENT OF INTEGRATED TAX” or “SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX”,

    • Amit Seth says:

      who is to execute the LUT or affidavit –
      (a) The supplier to the SEZ unit: or the,
      (b) SEZ unit / developer receiving the goods / services.

  13. kamal says:

    We are a Service Provide company, and want to confirm that if you give any service provide on SEZ Unit, we raise our Invoice charges with GST or not.
    we are steamer agent

  14. Biswajit Nath. says:

    We are a Service Provide company, and want to confirm that if you give any service provide on SEZ Unit, we raise our Invoice charges with GST or not.

  15. unnikrishnan says:

    Dear Sir,

    we are running sez unit canteen in side the sez we are only supplying in sez unit will be exempted from GST , and how will get the input credit. please clarify this matter.

    Thanking you.

    Unni

  16. Akash says:

    Hi Sir

    We run a fast food outlet inside a software company operating inside an SEZ. Will we be exempted from GST as we are supplying inside an SEZ?

  17. H.R. Sreepada, Cost Accountant says:

    Supplies by a DTA Unit to SEZ Unit or SEZ Developer are treated as Exports. Such supplies are covered under IGST Act. Both Exports & supplies to a SEZ unit or SEZ Developer attract Zero % IGST. Supplies by SEZ unit to a DTA unit are are treated as imports by DTA unit and IGST is applicable. DTA unit is eligible to take ITC of IGST so charged. However BCD will be charged as applicable today, which is not an eligible ITC by the DTA unit.

    Supplies to EOU units are taxable supplies and attract CGST & SGST or SGST depending up on the place of supply. The EOU unit receiving the supply of goods or services is eligible for ITC & can apply for refund claim. However more specific clarifications are awaited.

    • naveen says:

      Pls reply for the required documentation to be submitted to the dept to obtain Zero % IGST (From DTA to SEZ).

    • Vijay garg says:

      So we have to charge IGST IN supply of goods to SEZ units or not . If it is not charged how we can get refund of this as we are trader.

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