9911796707
TMI Blog2024 (4) TMI 845X X X X Extracts X X X X X X X X Extracts X X X X ..... M; * that section 7 of SEZ Act 2005, provides for exemption to all services procured from a DTA (Domestic Tariff Area) or foreign suppliers specified in first schedule. * that in terms of section 51 of the SEZ Act, 2005, the provisions of SEZ Act would have overriding effect on provisions of any other act including taxation laws; * TRU, CBIC, vide letter F. No. 334/335/2017-TRU dated 18.12.2017, has issued a clarification in the context of RCM on procurement of service by International financial Services Centre, SEZ to the effect that a unit in SEZ can procure services where they are required to pay GST under RCM. without payment of Integrated Tax provided the SEZ unit, furnishes a Letter of Undertaking in place of a bond as specified in condition no. (i) in Para 1 of notification no. 37/2017-CT. * that in terms of CBIC Circular No 48/22/2018-GST dated 14.06.2018 any supply made to SEZ developers/SEZ unit for authorized operation, endorsed by the specified officer of SEZ, will be treated as interstate supply even if the supplier of goods or services or both, and the place of supply are in the same state /union territory. * that rule (5)(5)(a) of SEZ Rules, 2006, provides ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ruling as well as the submissions made during the course of personal hearing. We have also considered the issue involved, the relevant facts & the applicant's submission/interpretation of law in respect of question on which the advance ruling is sought. 8. Before adverting to the submissions, we would like to reproduce the relevant provisions/notifications for ease of reference: Integrated Goods and Services Act 2017 o Section 5. Levy and collection.- (3) The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. o Section 7. Inter-State supply.- (5) Supply of goods or services or both,- (a) when the supplier is located in India and the place of supply is outside India; (b) to or by a Special Economic Zone developer or a Special Economic Zone unit; or (c) in the taxable territory, not being an intra-State supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the factories Act. 1948 (63 of 1948); or (b) any society registered under the Societies Registration Act, 1860 (21 of 1 860) or under any other law for the time being in force in any part of India; or (c) any co-operative society established by or under any law; or (d) any person registered under the Central Goods and Services Tax Act or the integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; or (e) any body corporate established, by or under any law; or (f) any partnership firm whether registered or not under any law including association of persons; or (g) any casual taxable person. [Provided that nothing contained in this entry shall apply to services provided by a goods transport agency, by way of transport of goods in a goods carriage by road, to. - (a) a Department or Establishment of the Central Government or State Government or Union territory: or (b) local authority; or (c) Governmental agencies, which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under section 51 and not for making a taxable su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red person paying tax under section 10 of the said Act Any person other than a body corporate A registered person, located in the taxable territory.] 17 Services provided by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient, provided to a body corporate. Any person, other than a body corporate who supplies the service to a body corporate and does not issue an invoice charging integrated tax at the rate of 12 per cent. To the service recipient Any body corporate located in the taxable territory] Notification No, 18/2017-lntegrated Tax (Rate) dated 5.7.2017 In exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Service Tax Act, 2017 (13 of 2017). the Central Government, on being satisfied that it is necessary in the public interest so to do and on the recommendations of the Council, hereby exempts services imported by a unit or a developer in the Special Economic Zone for authorised operations, from the whole of the integrated tax leviable thereon under section 5 of the Integrated Goods and Service Tax Act, 2017 (13 of 2017). Spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise law for the purpose of export by a manufacturer or supplier.] 9. The applicant's case is that in respect of the four services that they avail from DTA viz GTA, legal services from advocate, security services, bus hiring for employees, a recipient of service is required to pay GST under RCM in terms of notification No. 10/2017-IT (Rate), reproduced supra. However, the applicant further states that being an SEZ unit, Rule 5(5)(a) of the SEZ Rules, 2006, provides exemption from SGST; that Rule 30(1), ibid, enables a DTA supplier to clear services to an SEZ unit as in the case of zero rated supply in terms of section 16 of IGST Act, 2017, either under bond or under legal undertaking or under any other refund procedure permitted under the GST law; that notification No. 18/2017-IT (Rate) exempts service imported by unit in SEZ for authorized operation from the whole of IGST leviable u/s 5, ibid', that in terms of section 2(o) of SEZ Act, 2005, receipt of services by a SEZ unit from DTA is also to be treated as imports; that even otherwise, section 51 of the SEZ Act, 2005, which is a non obstante clause, clearly states that the provisions of the SEZ Act shall have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rson who intends to supply goods or services for export without payment of integrated tax (i) all registered persons who intend to supply goods or services for export without payment of integrated tax shall be eligible to furnish a Letter of Undertaking in place of a bond except those who have been prosecuted for any offence under the Central Goods and Services Tax Act, 2017 (12 of 2017) or the Integrated Goods and Services tax Act, 2017 (13 of 2017) or any of the existing laws in force in a case where the amount of tax evaded exceeds two hundred and fifty lakh rupees; On a similar issue, wherein clarification was sought , as to whether the SEZ unit is liable to pay GST in respect of legal services, sponsorship services etc received by an SEZ unit in IFSC, Gandhinagar, from a unit in DTA, which are chargeable to GST under RCM, Tax Research Unit, CBIC, New Delhi, clarified as under: "3. Since the intention of the Legislature is not to tax supplies to a unit in SEZ or a SEZ Developer which have been zero rated under clause (b) of section 16(1) of the IGST Act, by virtue of deeming provision under section 5(3) of the IGST Act, 2017, levy for procurement of input services specifi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
