MANAGEMENT

Detailed explanation-1: -Any supply of goods or services or both to a Special Economic Zone developer/unit will be considered to be a zero-rated supply. That means these supplies attract Zero tax rate under GST. In other words, supplies into SEZ are exempt from GST and are considered as exports.

Detailed explanation-2: -As per sec 16(1) of IGST Act any supplies made by a registered dealer as an export (Both goods or services) or supply to an SEZ qualifies for Zero Rated Supplies in GST. The supply to a developer of an SEZ is also covered under Zero-Rated Supplies in GST as no tax is levied on these supplies as well.

Detailed explanation-3: -A single registration can be taken for all SEZ units within a State, whether located in one SEZ or more than one SEZ. GSTR-1 – Column 6B ( Supplies made to SEZ unit or SEZ Developer ) specified with B2B Supply sheet. Invoice Type shall either be SEZ supplies with payment or SEZ supplies without payment.

Detailed explanation-4: -Supply to SEZ is Zero-Rated supply. But this provision is only for authorised operations. For non-authorised operations, the suppliers are under confusion that whether to charge GST or not. As per section 16 of IGST Act, all the supplies made to SEZ are Zero-rated, and GST is not chargeable to that.