Hi all,
Inter state supply to SEZ situation. Goods are sent through courier services which charges 18% gst. Courier charges are added in the invoice and recovered from customer. Can the gst on courier charges also be charged to SEZ unit?
4 Replies
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 22 June 2020
In term of Notification 15/2017, 18/2017 (both are IGST rate)
Exempts all goods or services or both imported by a unit or a developer in the SEZ from the whole of the integrated tax for authorized operations.
Hence any goods & Services procure by Sez for Authorised Operations is Exempted.
Taxpayer who supply to Sez either can charge IGST on bill, treated as export , the IGST charged therein bill cannot be recovered from Sez , the Tax payer has to claim Refund for the same as provided in Section 54 or Taxpayer can file Lut & can raise the bill to Sez without payment of IGST.
Note : As per Notification 18/2017 IGST Rate : Any Services provided to Sez is Exempted. So in your case if Courier bill Seperatly raise will be Exempted , but if it is included in Bill for principal supply of Goods then need be issue as explained above.
Exempts all goods or services or both imported by a unit or a developer in the SEZ from the whole of the integrated tax for authorized operations.
Hence any goods & Services procure by Sez for Authorised Operations is Exempted.
Taxpayer who supply to Sez either can charge IGST on bill, treated as export , the IGST charged therein bill cannot be recovered from Sez , the Tax payer has to claim Refund for the same as provided in Section 54 or Taxpayer can file Lut & can raise the bill to Sez without payment of IGST.
Note : As per Notification 18/2017 IGST Rate : Any Services provided to Sez is Exempted. So in your case if Courier bill Seperatly raise will be Exempted , but if it is included in Bill for principal supply of Goods then need be issue as explained above.
Way2Go
(Finance)
(54 Points)
Replied 22 June 2020
So in case the taxpayer files Lut, he can raise the bill to Sez without adding GST to courier charges in the same Bill for principal supply of Goods. Is that right?
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 22 June 2020
yes correct...................................
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