Levy of GST—Supply of goods or services to SEZ unit or SEZ developer—In the instant application
the question before authority is that Whether or not the supply of goods and on-site services to customers in SEZ area to any SEZ unit or SEZ developer is zero rated supply under section 16 of the Integrated Goods & Services Tax Act, 2017? - whether GST is chargeable for the supply of goods or services to SEZ unit or SEZ developer?
Held that—Section 16 of IGST Act deals with “zero rated supply” which includes the supply of goods and services or both to a Special Economic Zone Unit or a Special Economic Zone Developer - Since the Applicant supplies to units and developers of Special Economic Zones only, the provisions of Section 16 of IGST Act will be applicable in this case and the tax liability will be at zero rate under sub section 1(b) of the IGST Act - He may supply without paying tax subject to the provisions under section 16 (3) (a), or he may supply on payment of tax and claim refund subsequently under section 16 (3) (b) of the IGST Act.
Ruling—The Applicant shall be liable to pay tax when supplying to Units and Developers of Special Economic Zones subject to the provisions of Section 16 of the Integrated Goods and Services Act, 2017.[AUTHORITY FOR ADVANCE RULINGS, WEST BENGAL] [2018] 3 TAXLOK.COM 41 (AAR-WB)