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TMI BlogClarifications of certain issues under GST related to SEZ and refund of unutilized ITC for job workers.X X X X Extracts X X X X X X X X Extracts X X X X ..... 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)? 1.1 As per section 7(5) (b) of the Integrated Goods and Services Tax Act, 2017 (IGST Act in short), the supply of goods or services or both to a SEZ developer or a SEZ unit shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce. Whereas, as per section 12(3)(c) of the IGST Act, the place of supply of services by way of accommodation in any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... feguards and procedure as may be prescribed. Further, as per the second proviso to rule 89(1) of the West Bengal Goods and Services Tax Rules, 2017 (WBGST Rules in short), in respect of supplies to a SEZ developer or a SEZ unit, the application for refund shall be filed by the: (a) supplier of goods after such goods have been admitted in full in the SEZ for authorised operations, as endorsed by the specified officer of the Zone; (b) supplier of services along with such evidences regarding receipt of services for authorised operations as endorsed by the specified officer of the Zone. 2.2 A conjoint reading of the above legal provisions reveals that the supplies to a SEZ developer or a SEZ unit shall be zero rated and the su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of fabric processors, the output supply is the supply of job work services and not of goods (fabrics). 3.2 Hence, it is clarified that the fabric processors shall be eligible for refund of unutilized ITC on account of inverted duty structure under section 54(3) of the WBGST Act even if the goods (fabrics) supplied to them are covered under notification No. 1129-F.T. [05/2017-State Tax (Rate)] dated 28.06.2017. 2. Difficulty if any, in the implementation of this circular may be brought to the notice of the Commissioner. 3. This circular shall be deemed to have come into force with effect from 14.06.2018. Sd/- (Smaraki Mahapatra) Commissioner, State Tax, West Bengal Date: 18.09.2018 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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