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Supplies made to sez with taxable (no one clear my doubt till date)

S ELAVARASI (ACCOUNTANT) (2975 Points)

11 December 2018

Dear Respected Members.,

We are manufacturer of TOOLS & HOLDERS for CNC machines. We supply material (Tools - GST @ 18%) to SEZ buyer. We don't have LUT/Bond. So, Supply with taxable...

Using tally and As per Invoice the

Taxable/Basic Value - Rs. 10000

IGST (SEZ-Taxable) - Rs. 1800. We paid the Tax in my pocket. Buyer can't give Tax amount. Only give Basic cost. So, Tax amount right off or any other. I don't know what can I do...?

In Tally GSTR-3B it's showing 3.1 b.

But., In Tally GSTR-1 return not showing the details....

What can I do now...?

How can I get the Tax Amount...?

What are the procedure about this transacton under GST...?

Please guide me...

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8 Replies

Sundararajan S (Final Student of ICAI) (1764 Points)
Replied 11 December 2018

As regards export and supplies to SEZs, there are two options.

1. Submission of LUT without any tax payment
2. Paying IGST by debiting Electronic credit ledger. This you cannot collect from recipient.

As regards exports, shipping bill itself be considered as application for refund, provided the invoice should have the words 'Supply on payment of integrated tax'.

As regards supplies to SEZ then to my knowledge, it should be approved by the SEZ development commissioner. Upon that refund would be processed I think.

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pritesh (CA Final student) (7101 Points)
Replied 12 December 2018

in tallt gstr 1 it will show in b2b.

i think you may be required to file RFD 01 for refund

S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 13 December 2018

Thank You for the replies Friends...

But,
I show the Sez sales in B2B section in GSTR-1 return. How can I claim refund...?
Also what about ITC for the purchased goods which is supplied to SEZ.

Sundararajan S (Final Student of ICAI) (1764 Points)
Replied 13 December 2018

Refund of either one of the following would only be given to you

1. If you have not paid IGST by debiting Electronic credit ledger, and filed LUT, then you can claim refund of ITC by filing relevant form

2. If you have not filed LUT and paid IGST by debiting Electronic credit ledger, then that IGST debited by you will be refunded to you. As regards exports, shipping bill itself is enough for refund. no further application required. however for SEZ supplies, the invoice should be approved by SEZ development commissioner or other authority as prescribed. Upon that refund would be processed.

S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 13 December 2018

No... We are supplied Taxable Invoice. No LUT/ Bond. We paid IGST as per our Transactions Output-Input = Liability.

So, What are the process next...?

(In party ledger the Tax Amount is Outstanding...)

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S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 13 December 2018

No... We are supplied Taxable Invoice. No LUT/ Bond. We paid IGST as per our Transactions Output-Input = Liability.

So, What are the process next...?

(In party ledger the Tax Amount is Outstanding...)

Ayyasamy (GST Practitioner) (346 Points)
Replied 13 December 2018

create the ledger IGST Refund and put entry to IGST Refund Dr , Customer name cr now ther is no outstanding from customer end .

now the refund application process only befor jun'18 only.if ur transation before jun'18 means u need to check first in 3B - correctly u are filled in 3.1 b "Outward taxable supplies (zero rated )"colomn and GSTR1 B2B correctly u are select the "SEZ Supplies with payment"

everthing is correct go to apply the refund application through online -to select the

Refund on account of Supplies to SEZ unit/ SEZ Developer (with payment of tax)

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