GST on Supply in SEZ in case of Bill to Ship to transactions

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..... GST on Supply in SEZ in case of Bill to Ship to transactions
Query (Issue) Started By: - Mehul Pandya Dated:- 7-2-2020 Last Reply Date:- 28-5-2020 Goods and Services Tax - GST
Got 5 Replies
GST
A got contract from SEZ unit for supply and erection of factory shed within SEZ area. A gives sub contract to B. Both A and B located outside SEZ area. Now the query is A wants B to Supply good .....

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..... s and services directly into SEZ area using Bill to Ship to Transactions without payment of IGST under zero rated supply. So whether is it possible according to GST law for B to supply to A as Consignee and Delivery at SEZ unit without payment of IGST ?? or B have to pay CGST - SGST. Reply By KASTURI SETHI: The Reply: "Bill to -ship to" is not applicable in this scenario. It is inter .....

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..... -State supply of service.A should pay IGST and claim refund. Reply By Mehul Pandya: The Reply: CAN 'B' SUPPLY WITHOUT IGST CONSIDERING PLACE OF SUPPLY PROVISIONS AS SERVICE SUPPLIED TO SEZ UNIT AND RELATED TO IMMOVABLE PROPERTY. BECAUSE Generally, the place of supply of services is the location of the service recipient. Special provisions have been made to determine the place of suppl .....

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..... y for the following services: Services related to immovable property Reply By KASTURI SETHI: The Reply: Answer is 'NO'.Sub-contractor is an agent of main contractor. Sub-contractor works for and on behalf of main contactor. Hence SEZ unit is concerned with A only. Reply By YAGAY andSUN: The Reply: In our view, if terms of contract/agreement allows subcontractor to supply of goods for .....

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..... installation/erection in SEZ Unit/Developer then the Subcontractor will definitely supply the goods on LUT without charging of IGST, if such work duly falls under the authorized operations of SEZ Unit or Developer. Reply By YAGAY andSUN: The Reply: This transaction would be a direct supply of goods and service by the subcontractor.
Discussion Forum - Knowledge Sharing .....

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