GST exemption for SEZ

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I am operating fruits and Juice shop in SEZ for which I am charged a rent by the Licensor. whereas the companies which operates from the SEZ aren't charged IGST but I am charged IGST of 18% on rent.
My question is
1) Why am I not exempted from IGST as the product of my shop are exclusively consumed the person who is working
Replies (5)
2) Electricity and water consumed by me is provided by the Licensor and the same is also charged IGST of 18% (is it applicable for electricity and water)
A supply to SEZ is treated similar to exports.
As per definition, the Zero Rated Supplies include supply of goods or services to SEZ unit. (Sec 16)
The person making supply to SEZ will get the full refund of the IGST paid on such supply by him.
So, basically if you qualify the criteria of SEZ unit as per Sec 19 & 20 of IGST Act- your supplier will get full refund of the supplies made to you.
Eg. if the rent (which is chargeable at 18%) amounts to Rs. 100 - he will show the Rs. 18 in the return as IGST paid for supplies to SEZ, for which will be refunded as soon as the refund gets processed. This practically means the supplier shouldn't charge the GST portion from you. (Though detailed study of particular case is recommended for a stronger recommendation).

Regarding your second point... supply of electricity is out of scope of GST due to constitutional provisions and water excluding that supplied in sealed containers, is NIL rated. Even if supplies are somehow chargeable due to conditions existing there, you are not supposed to pay the burden if you qualify validly as SEZ unit.

Hope this helps and correct me if I am wrong...
I'm guessing you are not registered with SEZ to be eligible for SEZ unit status.

Hence the GST for provision of service of rent by the licenser will apply as in the normal course.
Thanks for the reply...

What is the process get registered in SEZ.
Process is bit lenghthy and requires lot of complainces.


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