28 June 2023
Please note that we are running a SEZ unit and sell goods (Used Chairs) to DTA (Domestic Tariff Area) to a local buyer . We have filed DTA Sales ( Bill of entry) in the SEZ online system and paid duty @ 18% through challan.
Please let us know if the same transaction of sales (of used chairs) to be filed/furnished in the GSTR 1 return.
Please advise whether DTA sales made by SEZ units under the filing of DTA Sales BOE need to be reported in GSTR-1.
07 July 2024
Sales made by SEZ units to DTA (Domestic Tariff Area) units are generally considered as exports under GST. Here’s how you should handle reporting such transactions in GSTR-1:
1. **Nature of Transaction:** Since you are selling goods (used chairs) from your SEZ unit to a buyer in the Domestic Tariff Area (DTA), this is treated as an export of goods from the perspective of GST.
2. **Reporting in GSTR-1:** - **Invoice Details:** You need to report these sales in GSTR-1 under the section for exports (Table 6A). This includes details of invoices issued for the export of goods. - **Export Documentation:** Ensure that you have the necessary export documentation (such as shipping bills, Bill of Export (BoE), or any other document prescribed for SEZ units) ready when filing GSTR-1. - **Exemption from Tax:** Typically, exports are zero-rated under GST, meaning no GST is levied on exports. However, in the case of SEZ units selling to DTA, if you have paid IGST (Integrated GST) on these transactions, you can claim a refund of IGST paid. Alternatively, you may opt for export under bond/LUT (Letter of Undertaking) to avoid payment of IGST at the time of supply.
3. **DTA Sales BOE (Bill of Entry):** - The DTA sales made by SEZ units under the filing of DTA Sales BOE are primarily for customs purposes to bring goods into the Domestic Tariff Area. This aspect is separate from GST reporting but related to customs duty.
4. **Clarification on Reporting:** - The sales made to DTA should be reflected in your GSTR-1 under exports (Table 6A) if they qualify as exports under GST rules. - Ensure that the documentation submitted for customs purposes aligns with the requirements for GST reporting.
In summary, while the DTA sales BOE (Bill of Entry) is filed for customs compliance, the sales need to be reported in GSTR-1 under exports, considering the goods are sold from an SEZ unit to the DTA. This ensures compliance with GST regulations regarding exports and allows for appropriate claims of IGST refund or benefit under LUT. If you have specific doubts or need further clarification, consulting with a GST professional or your tax advisor would be beneficial.
CAclubindia
