NARESH V (Accountant) (93 Points)
05 June 2019Hi,
We are located SEZ unit and one of the vendor raised an invoice to us with "LUT without payment of IGST" and vendor mentioned in Basic value +IGST value in invoice .
Our doubt is that said mentioned IGST amount is eligible to take credit with us? or entire amount should considered as expenditure?
Any one suggest us immediately.
JOJY THOMAS
(CHARTERED ACCOUNTANT)
(295 Points)
Replied 05 June 2019
Under GST the supply of goods or services or both to SEZ are treated as zero rated supplies.Zero rated supply means any of the following supplies of goods or services or both, namely:
a) export of goods or services or both; or
b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit. In your case there is no need to charge IGST as IGST IS @ 0%. Please get an updated invoice only with basic value from the party.
CAclubindia
