GST on supply to a SEZ unit by a unit in DTA

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..... GST on supply to a SEZ unit by a unit in DTA
Query (Issue) Started By: - SHIVANSH MEHRA Dated:- 14-1-2020 Last Reply Date:- 16-1-2020 Goods and Services Tax - GST
Got 2 Replies
GST
Can a unit in DTA supply goods/services to a SEZ unit under a LUT (without any bank guarantee) without paying GST? Or it has to mandatorily supply under a bond (with bank guarantee) Please quote the releva .....

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..... nt notification/law, if possible. Reply By Rajagopalan Ranganathan: The Reply: Sir, As per section 16 (1) (b) of IGST Act, 2017 supply of goods or services or both to a special Economic Zone Developer or a special Economic Zone Unit will be treated as zero rated supply. According to rule 96 A of CGST rules, 2017 "any registered person availing the option to supply goods or services for ex .....

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..... port without payment of integrated tax shall furnish, prior to export, a bond or a Letter of Undertaking in FORM GST RFD-11 to the jurisdictional Commissioner, binding himself to pay the tax due along with the interest specified under sub-section (1) of section 50 within a period of - (a) fifteen days after the expiry of three months [, or such further period as may be allowed by the Commissione .....

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..... r,] from the date of issue of the invoice for export, if the goods are not exported out of India; or (b) fifteen days after the expiry of one year, or such further period as may be allowed by the Commissioner, from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange [or in Indian rupees, wherever permitted b .....

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..... y the Reserve Bank of India. According to rule 96 A (6) "the provisions of sub rule (1) shall apply, mutatis mutandis, in respect of zero-rated supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit without payment of integrated tax. Reply By PAWAN KUMAR: The Reply: Reply given by sh. Rajgopalan sir is correct. An dta may supply goods or se .....

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..... rvices under lut to sez. Dta need to obtain lut or bond in this regard.
Discussion Forum - Knowledge Sharing .....

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