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SEZ supply

Mohit lodhi (student) (952 Points)

27 November 2018

We are supplying goods to SEZ (without payment of tax)

but claiming full ITC on purchases.

Is it correct?

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6 Replies

Mohit lodhi (student) (952 Points)
Replied 27 November 2018

but we are not paying tax on that supply.

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Sarika Kothari (144 Points)
Replied 27 November 2018

ITC can be claimed as refund because there is no tax from what we can adjust so claim for refund. i am not sure but please if someone sure do suggest

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Mohan Bagalkot (Tax Consultant) (233 Points)
Replied 28 November 2018

SEZ supplies are treated as exports as you say. But in GSTR3B & GSTR1 in which table we have to show the details?

RAJA P M ("Do the Right Thing...!!!") (128004 Points)
Replied 29 November 2018

@ Mohit Lodhi.,

Without Charging IGST You can't supply SEZ dealer. In case You have LUT / Bond then You can supply without charging GST.
Otherwise payment is must by Yourself...

No problems for ITC...

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 29 November 2018

As per sub section (3) of section 16 IGST Act : A registered person making zero rated supply shall be eligible to claim refund under either of the following options, namely:- [a] he may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit; Hence as per above you can claim ITC even if you exporting with charging IGST (with LUT)