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Supply of services to SEZ

Nisha (Job) (140 Points)

05 March 2018

Whether a Company providing services to SEZ paying no IGST on the transaction, requires to receive the payment in foreign currency to consider as export of services?

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7 Replies

Sagar Mailapur (172 Points)
Replied 05 March 2018

i think no

1 Like

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 05 March 2018

mam

As per Clause (b) of Sub-section (5) of section 7 of IGST Act 2017: supply of goods or services or both to or by a SEZ developer or SEZ unit shall be treated as if such supply is in the nature of inter-state supply & treated as zero rated sale (export)

LUT has to be file for charging IGST

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 05 March 2018

,* LUT has to be file for NOT charging IGST

1 Like

sujith kumar dasa (banglore) (1496 Points)
Replied 06 March 2018

No, even receipt in INR would be treated as export of services in case of SEZ. However fpr not charging IGST, LUT should be submitted before raising first invoice

RAJA P M ("Do the Right Thing...!!!") (127911 Points)
Replied 06 March 2018

If You are not charging (Paid) IGST Tax then LUT bond is mandatory....

Note :
(As per my View)
Supplies To SEZ is treated as Inter State supply also in India. So, it's not considered as Export of Service...
But, You are received payment as Foreign Currency. The payment is not a matter. You can get payment from anywhere from the related Party or Customer...