All About Special Economic Zone

• Separate Registration required for SEZ Unit or SEZ Developer.
• Goods or services imported by SEZ unit for authorized operation then those supplies shall be exempted.
• If any person supplies goods or services to SEZ for Authorize operations then he can claim refund.
• SEZ Unit can not itself claim refund.
• Important: Hotel services to SEZ are for authorize operation shall be zero rated supplies however if supplies to person outside SEZ then it shall be taxable.
• SEZ units liable to GST on supplies to DTA (Domestic Traffic Area) Unit??

In this case SEZ units supplies goods to DTA and DTA unit Is required to file bill of entry and pay applicable custom duty which also includes IGST. Hence when one party has paid the tax (i.e. DTA) then there is not need of payment of tax by SEZ (Concept of RCM) As per section 2(m) of SEZ Act, supplying goods to DTA is export hence tax payment is not required by SEZ.

• Railway will not charge any GST on freight charges for supplying to SEZ unit or developer. Railway will file LUT with tax department.
• If services directly provided to SEZ then exempt if supplied to intermediary then not exempt.
• Supply from Free Trade Warehousing Zone (FTWZ) to DTA, in that case same provisions has been applied as applied in case of SEZ Supplies.