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Should we have to raise iGST bill for SEZ invoices... ??

umesh (accountant) (151 Points)

13 March 2018

Should we have to raise iGST bill for SEZ invoices... ?? then how to raise e way bill for the same... ??

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CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 13 March 2018

Under this option person making supply to SEZ will charge IGST at applicable rate as may be applicable for supplies of Goods or Services made to SEZ or SEZ Developer. Invoice will be Export Invoice in Indian Currency with a declaration that ‘SUPPLY MEANT FOR SEZ DEVELPOER/UNIT WITH PAYMENT OF INTEGRATED TAX’. This option will be beneficial for faster processing of Refund. Actually the IGST liability shown in the Invoice is only for the presentation purpose and should not be collected from the customer, actually it works as follow.

For e.g. Mr. ABC Ltd makes supplies of Goods costing Rs.100000 for Rs.1500000 which attracts IGST @ 18% to Mr. XYZ Ltd being located in Kandla SEZ. Invoice will be as under

Value of Supply: Rs.150000.00

IGST @ 18% : Rs. 27000.00

Total Invoice Value : 177000.00

Now, ABC Ltd, will first discharge liability of IGST of Rs.27000 by utilizing Input Credit of Rs.18000 (Rs.100000*18%) and Cash Payment of Rs.9000.00, thereafter, he will get refund of Rs.27000 whole amount of IGST, So Cash Payment of Rs.9000- Refund of Rs.27000 i.e. he get refund of Input Credit of Rs.18000 in net terms.

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umesh (accountant) (151 Points)
Replied 13 March 2018

Thank you very much.. good information... ,😊😊

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 13 March 2018

Very well Explained Mr NAVEEN CHAND....

I APPRECIATE YOUR EFFORT AND THE EXPLANATION WITH EXAMPLE...
ALSO ITS HELP TO ALL TAXPAYERS WHO IS SUPPLIES MADE TO SEZ ZONE... 👍👍👍👍🙏🙏🙏🙏

Hiral Mehta (Job) (118 Points)
Replied 19 March 2018

Can i know where to show this sale made to sez in GSTR 1. In B2B sales or in export sales as my sale to SEZ is with payment of tax. but in case of SEZ there is no shipping bill & other documets available. So what is the correct place to show SEZ sales?

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 29 March 2019

Originally posted by : Hiral Mehta
	Can i know where to show this sale made to sez in GSTR 1. In B2B sales or in export sales as my sale to SEZ is with payment of tax. but in case of SEZ there is no shipping bill & other documets available. So what is the correct place to show SEZ sales?