RCM applicability for SEZ under GST, Goods and Services Tax - GST

[Velayutham Panchatcharam]

Dear Experts,

Can anybody explain the applicability of RCM for SEZ Developers / Units as SEZ is coming under IGST?

Regards

Panch

Posts / Replies

[KASTURI SETHI]

Supply of goods or service to SEZ is export out of country. Export is zero rated. So question of RCM for SEZ arises in your mind ?

[RameshBabu Kari]

Dear sir,

If registered SEZ unit purchases goods/services from unregistered person, does this same like normal case ?

[KASTURI SETHI]

Treat the exported goods as GST paid. If unregistered person supplies to SEZ, that is also export.

[HimansuSekhar Sha]

Any supply made to sez is inter state supply. Inter state suppliers needs to be registered.

[ajay gaur]

RCM have 12 service only and it will applicable on unregistered dealer if u r registered

[KASTURI SETHI]

I agree with Sh. Himanshu Sha an expert. Registration is required being inter state sale. GST is not to be paid being zero rated. Turnover of export is includible while arriving at RS.20 lakhss, small scale threshold exemption.h

[Ganeshan Kalyani]

GST is not applicable to SEZ as it is treated export and GST law is not applicable.

[HimansuSekhar Sha]

Even in such case the clearance will be under out/bond.

[KASTURI SETHI]

Yes I agree with you. Zero rate of GST is also a rate of GST. It is one of the five slabs. Hence in this context we can say exported goods are to be treated as GST paid. SEZ is with in ambit of GST.

[Velayutham Panchatcharam]

Dear Experts,

Thanks for your valuable reply and clarifications. So based on the above, RCM is not applicable for SEZ whether supply from DTA by registered or unregistered dealer. Please correct me if I am wrong.

Regards

Panch

[Kishan Barai]

Great reply by all experts but let me make one clarification that Exports Business does not require mendatory GST registration. One can export goods / Supply goods to SEZ without GST Registration but to claim ITC it is required.

[vijay kumar]

Export / supply to SEZ is inter state supply. As per Section 24 of CGST Act, it appears registration is mandatory. It is a taxable supply, but is zero rated. Further, the procedure prescribed under Section 16 of IGST Act (supplies without payment of GST) can be followed by a registered person only. But once registered, he has to comply with other statutory requirements like invoicing and filing of returns. As per Tweet FAQ also, it is mentioned that registration is mandatory (since zero rated & to claim refund of ITC). Perhaps, it is the intention to monitor all the zero rated supplies under GST regime.

[Nimish Shah]

Dear Experts,

Thanks for your valuable reply and clarifications.So based on the above comments, if construction company construct commercial property in SEZ area,company would recd service/goods from small traders who would not be registered under GST then how to deal with such transaction.

regards

Nimish Shah