How to supply to SEZ units under GST

How to supply to SEZ units under GST

Presentation 

A considerable measure of us have questions and concerns with respect to various angles under GST. We on our site are taking a shot at each issue and giving a response to each question. Henceforth today in this article we are managing supply to SEZ under GST. 

In this article, we will see initially what is SEZ, how GST has influenced it and how to supply to SEZ units under GST. Without much bother, we should begin with understanding the idea of SEZ in India.What is SEZ? 

Extraordinary monetary zones or SEZ are territories where business and exchange laws are not the same as rest of the nation. SEZs are made to advance exchange and financial matters in specific zones. Numerous monetary strategies are acquainted with support business in that zone. 

The real points of SEZs are – 

Employment creation 

Viable organization 

Expanded venture 

Expanded exchange 

Remote exchange 

The idea of unique monetary zone appeared in 2000. The essential goal was to make zones for bother facilitated commerce and worldwide exchange to advance the economy. SEZs are where obligation organized commerce is finished. 

Since the origin of GST, everybody is befuddled about the status of SEZs. We should talk about the issue underneath. 

Supply to SEZ units under GST 

As per GST law, the supply of products to SEZ units is dealt with as zero-evaluated supply. We have isolated the supply to SEZ into two segments with the goal that initially we should examine the idea of zero-appraised supply and afterward read about the system. 

Zero-appraised supply alludes to things that are assessable however the rate of duty is nil on their information supplies. The accompanying are zero-appraised supplies – 

Fare of products 

Fare of administrations 

Supply of merchandise and enterprises or both to SEZs 

Presently whosoever is making supply to the SEZ units, he has two choices: 

He may supply merchandise and ventures or both under security or letter of the endeavor without paying IGST and claim the discount of unutilized input charge credit. 

He may supply merchandise and ventures or both with installment of IGST and may assert a discount on the assessment paid. 

Along these lines, Supply of merchandise and enterprises to SEZ unit would be considered as zero-evaluated supply and any of the two alternatives might be profited. 

System to supply to SEZ unit under GST 

According to the GST rules, the supply to SEZ (zero-appraised supply) should be possible by 2 choices. We will talk about the method of supply under GST in subtle elements. The accompanying are the alternatives of supply in SEZ units – 

Without installment of IGST 

With installment of IGST 

1. Supply of products or administrations to SEZ units under GST without installment of IGST 

When you are making a supply to SEZ you are required to pay the IGST and later on guarantee for it. Notwithstanding, there is another method for supply which is by LUT or bonds. For this situation, the individual can supply to SEZ units by outfitting LUT or attach to the office. 

LUT remains for Letter of Undertaking and is submitted when the earlier year remote receipts are more than 1 crore rupees. Further, on the off chance that you are providing to the SEZ units out of the blue, at that point you have to document the bond with the office. 

Records for LUT – 

Frame RFD 11 on letterhead 

UT 1 bond on stamp paper 

Specialist Letter 

Other important records 

Records for bond – 

Frame RFD 11 on letterhead 

Bond on stamp paper 

Bank ensure (15% of the bond sum) 

Specialist letter 

Other important records 

On account of the bond, bank ensure must be outfitted alongside different records. 

After you have every one of the records and shape set you up should visit the division to confirm your reports and document the application. 

2. Supply to SEZ under GST with installment of IGST 

This alternative is the point at which you are enrolled for GST and making a supply to SEZ with installment of IGST. Here what the provider does is he will give the products or administrations to SEZs with installment of IGST which he will later claim in ITC. 

In this situation, on the off chance that you need the arrival of the ITC that you have paid you should do with shape GST RFD-01 electronically. 

It is essential to take note of that ITC can be guaranteed for business deals just and not for individual deals.


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