Is it necessary to supply within SEZ area to a SEZ unit any goods/service to be termed as zero rated supply?
As in my case renting of business centre is being provided outside the SEZ area but within the same state to a SEZ unit?
SANDEEP TIWARI (Student CA Final ) (85 Points)
27 May 2019
CA Altamush Zafar
(GST Consultant)
(15961 Points)
Replied 27 May 2019
SANDEEP TIWARI
(Student CA Final )
(85 Points)
Replied 27 May 2019
CA Altamush Zafar
(GST Consultant)
(15961 Points)
Replied 27 May 2019
Nandini H Gupta
(Chartered Accountant )
(369 Points)
Replied 27 May 2019
Refer to circular 48/22/2018-GST for the clarification in this reg:
1. Whether services of short-term accommodation, conferencing, banqueting etc. provided to a Special Economic Zone (SEZ) developer or a SEZ unit should be treated as an inter- State supply (under section 7(5)(b) of the IGST Act, 2017) or an intra-State
supply (under section 12(3)(c) of the IGST Act, 2017)?
Ans: In the instant case, section 7(5)(b) of the IGST Act is a specific provision relating to supplies of goods or services or both made to a SEZ developer or a SEZ unit, which states that such supplies shall be treated as inter-State supplies.
2. Whether the benefit of zero rated supply can be allowed to all procurements by a SEZ developer or a SEZ unit such as event management services, hotel and accommodation services, consumables etc?
Ans: subject to the provisions of section 17(5) of the CGST Act, if event management services, hotel, accommodation services, consumables etc. are received by a SEZ developer or a SEZ unit for authorised operations, as endorsed by the specified officer of the Zone, the benefit of zero rated supply shall be available in such cases to the supplier.
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