GST India Forum – Goods and Services Tax (GST) in India › Forums › Discussion › ZERO RATED SUPPY TO SEZ FROM DTA PROCEDURE UNDER GST
- MUKESH JOSHIParticipantJuly 8, 2017 at 3:09 PMPost count: 1Topics: 1
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Please provide brief detail regarding zero rated supply to SEZ and procedure to followed for the same.Ramasamy UlaganathanParticipantJuly 21, 2017 at 4:40 PMPost count: 17Topics: 0
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You will have to follow the same procedure which is followed by the Exporter of Goods or Services.
Following two options available for Zero rated supply to SEZ
i) Pay IGST on your own account on the supply made to SEZ unit without collecting it from the SEZ customer and apply for the Refund of IGST paid on SEZ supply Or
ii) Provide Bond or Letter of undertaking along with Bank Guarantee to the Jurisdictional Commissioner / Assistant commissioner along with Form RFD 11 and get it approved from the Tax department than raise invoice to SEZ unit without payment of IGST.
In both options, you can’t collect any IGST from the SEZ customer.
Formate of Form RFD 11 , Bond & Letter of undertaking f shared vide CBEC notification No.15 dated 01/07/2017
Assessee who have realized 10% of their export realization during the last financial year and if the realized amount is not be less than 1 crore can avoid giving Bank Guarantee. In all other cases Bond with Bank Guarantee required to be given
Bank Guarantee value to be computed as below
i) Project your expected Export turnover and Supply to SEZ turnover for the FY 2017-18
ii) Calculated 18% of IGST on the above projected value
iii) Give 15% on the above IGST tax value as bank guarantee
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