RCM 9(3) on SEZ unit
nitish kumar aggarwal (student) (106 Points)
01 April 2019
is SEZ unit required to pay igst under services of GTA and advocate under 9(3)and then claim refund
9 Replies
Priya Kashyap
(Student)
(7053 Points)
Replied 01 April 2019
As per Notification 13/2017 CT : If GTA providing services to specefic category of person (Mention in Notification) then the RCM is applicable , the recepient is liable do RCM. But ... As per Notification 11/2017 CT (r) if GTA is providing services to other than those specified category recipients. In such scenario GST shall be paid by GTA itself on forward charge mechanism @ 5%. GTA is not allowed to take any ITC. Moreover The Sez unit are not liable to Pay IGST As per Notification 64/2017 Custom Hence GST has to deposit on forward charge by GTA
nitish kumar aggarwal
(student)
(106 Points)
Replied 01 April 2019
how does 64/2017 applies here as import defined as per GST act and SEZ act 2005 is brings goods in India from outside india and DTA is not outside india
Pankaj Rawat
(GST Practitioner)
(55057 Points)
Replied 02 April 2019
@ Nitish Kumar Aggarwal
As per Notification No. 18/2017 -Integrated Tax (Rate) Services provided by GTA ,Advocate to Sez Unit is EXEMPTED .
(covers under the Operative Activities of Sez)
As per Notification No. 18/2017 -Integrated Tax (Rate) Services provided by GTA ,Advocate to Sez Unit is EXEMPTED .
(covers under the Operative Activities of Sez)
nitish kumar aggarwal
(student)
(106 Points)
Replied 02 April 2019
sir but 18/2017 is for import and again the defination of import gives a contradictory view
Pankaj Rawat
(GST Practitioner)
(55057 Points)
Replied 03 April 2019
Dear Nitish ;
Supply from DTA to Sez is treated as export . hence for sez unit its import im case of any inward suplies from DTA
but I dont understand what really you want to Know , you have asked that whether Sez unit is liable to do RCM on supply from GTA , the answer is NO & that is prescribed in Above notification 18/2017
Extract from Notification:
hereby exempts services
imported by a unit or a developer in the Special Economic Zone for authorised
operations, from the whole of the integrated tax leviable thereon under section
5 of the Integrated Goods and Service Tax Act, 2017 (13 of 2017).
Supply from DTA to Sez is treated as export . hence for sez unit its import im case of any inward suplies from DTA
but I dont understand what really you want to Know , you have asked that whether Sez unit is liable to do RCM on supply from GTA , the answer is NO & that is prescribed in Above notification 18/2017
Extract from Notification:
hereby exempts services
imported by a unit or a developer in the Special Economic Zone for authorised
operations, from the whole of the integrated tax leviable thereon under section
5 of the Integrated Goods and Service Tax Act, 2017 (13 of 2017).
nitish kumar aggarwal
(student)
(106 Points)
Replied 03 April 2019
sir 18/2017 talks about import of service and if I go by the definition of import as per GST act And SEZ act it means bringing in from a place outside india now DTA is not a place outside india it's juat outside the custom territory
Pankaj Rawat
(GST Practitioner)
(55057 Points)
Replied 03 April 2019
BUT SEZ IS TREATED AS OUT OF INDIA.
KINDLY REFER SECTION 16(B) SALE TO SEZ IS TREATED AS ZERO RATED SALE (EXPORT)
nitish kumar aggarwal
(student)
(106 Points)
Replied 04 April 2019
it is treated as deemed export and I am saying about import
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