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Whether export by sez unit is shown as export sales or exempted sales in gst?

Abhishek (CA) (60 Points)

03 August 2019

I have some query on GST on SEZ Unit

1. Any export made by SEZ Unit is to be treated as Export(Zero rated supply) or exempted supply in GST?

2. If its a Zero rated supply then whether IGST to be paid on it (whether or not under LUT)?

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2 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 03 August 2019

1. Export , but no need to charge IGST , liability to pay GST by Recepient in DTA

2. cover above in s.no.1

When a SEZ supplies goods or services or both to any one, it will be considered to be a regular inter-state supply and will attract IGST. The exception to this is, when a SEZ supplies goods or services or both to a Domestic Tariff Area (DTA), this will be considered as an export to DTA (Which is exempt for the SEZ)

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Abhishek (CA) (60 Points)
Replied 06 August 2019

Thanks for reply but my question is

When a SEZ unit made supply of goods to person (outside india) whether it will be export or exempted supply? the confusion is because SEZ Unit (non taxable area) made supply to out of india(non taxable area).