{"id":12285,"date":"2020-07-07T10:45:46","date_gmt":"2020-07-07T05:15:46","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=12285"},"modified":"2023-03-17T18:59:49","modified_gmt":"2023-03-17T13:29:49","slug":"special-economic-zone-sez-under-gst","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/special-economic-zone-sez-under-gst\/","title":{"rendered":"A Brief Take on Special Economic Zone- SEZ under GST"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Any supply to or by a unit of <strong>SEZ<\/strong><sup><a class=\"text-primary\" href=\"http:\/\/sezindia.nic.in\/\"><strong>[1]<\/strong><\/a><\/sup> under GST would get acknowledged as an <strong><em>Inter-state supply<\/em><\/strong> &amp; there will be the applicability of IGST or <strong><em>Integrated Goods and Supply tax.<\/em><\/strong> The spots for Special Economic Zones are within the national boundaries of the country. Although special economic zones exist within the same country, they would get considered as situated in a foreign nation. Units in a Special Economic Zone seek <em><a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST registration<\/strong><\/a><\/em> under the brand-new tax regime.<\/p>\n\n\n\n<p>Those dedicated\nzones in which businesses have the privileges of <strong><em>simplified legal compliances<\/em><\/strong>\nalong with uncomplicated tax provisions are known as <strong><em>Special Economic Zones<\/em><\/strong>.\nAs compared to the regular supplies, the treatment for supply from and to\nSpecial Economic Zones or SEZ under GST is different. Furthermore, Special\nEconomic Zones don&#8217;t get viewed as a part of India. SEZ&#8217;s objectives cover\nincreased investment, an increase in employment opportunities, escalating job\ncreation, growth in the trade balance, and proper administration. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/special-economic-zone-sez-under-gst\/#Definition_of_SEZ_under_GST\" >Definition of SEZ under GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/special-economic-zone-sez-under-gst\/#Provisions_Concerning_SEZ_under_GST\" >Provisions Concerning SEZ under GST&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/special-economic-zone-sez-under-gst\/#Export_and_Import_Meaning_With_Respect_to_SEZ_under_GST\" >Export and Import Meaning With Respect to SEZ\nunder GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/special-economic-zone-sez-under-gst\/#Take_Away\" >Take Away<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definition_of_SEZ_under_GST\"><\/span>Definition of SEZ under GST <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In relation to the <em><strong>provisions of section 2(19) of IGST Act<\/strong><\/em><strong><em>,<\/em><\/strong> the meaning of SEZ under GST as provided in the <strong><em>(clause za) &#8211; section 2<\/em><\/strong> of the <strong><em>Special Economic Zones Act of 2005.<\/em><\/strong><\/p>\n\n\n\n<p>According to the\nprovisions in <strong><em>clause za of section 2<\/em><\/strong> of the Special Economic Zones Act of\n2005, Special Economic Zone implies every Special Economic Zone declared under\nthe proviso to section 3(4) and section 4 sub-sections 1 comprises <strong><em>Warehousing\nZone and Free Trade<\/em><\/strong> and incorporates an existing Special Economic Zone.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Provisions_Concerning_SEZ_under_GST\"><\/span>Provisions Concerning SEZ under GST&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In taxation\nrelated matters, being a part of Special Economic Zones can be fruitful up to\nan extent. The supply of goods or services or even both to either Special\nEconomic Zone Unit or Special Economic Zone Developer would get considered as a\n<strong><em>zero-rated\nsupply<\/em><\/strong>. It indicates that the supplies of such types would entice zero\ntax under goods and service tax. <\/p>\n\n\n\n<p>In simple\nlanguage, we can say that supplies into SEZ under GST got an exemption and also\nget considered as exports. Thus, the suppliers furnishing goods to Special\nEconomic Zones can supply on IGST payment &amp; claim refund of taxes paid.\nFurthermore, the suppliers furnishing goods to SEZs can supply under <strong><em>Letter\nof Undertaking<\/em><\/strong> or bond without IGST payment &amp; claim credit of input\ntax credit. <\/p>\n\n\n\n<p>If the Special\nEconomic Zones supplies goods or services or even both, it will get considered\nas regular inter-state supply and would entice IGST. The exception associated\nwith this is if a Special Economic Zone&#8217;s involvement is in supplying goods or\nservices or even both of them to a DTA (Expanded as Domestic Tariff Area), this\nwill get considered as export to <strong><em>Domestic Tariff Area<\/em><\/strong> (Exempted for\nthe Special Economic Zone) &amp; custom duties along with other Import duties\nwould get viewed as payable by those people who receive these supplies in\nDomestic Tariff Area.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Export_and_Import_Meaning_With_Respect_to_SEZ_under_GST\"><\/span>Export and Import Meaning With Respect to SEZ\nunder GST<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Since\nSpecial Economic Zones are deemed to exist in a foreign territory, transactions\nwith Special Economic Zones would get listed as exports and imports. <\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Meaning of Export &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/h3>\n\n\n\n<p>Export refers to\ntaking goods or services outside India from an SEZ through any transportation\nmode or supply of goods or services from one Special Economic Zone\nDeveloper\/Unit in the Special Economic Zone to a different Unit in either the\nsame SEZ or another one. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Meaning of Import <\/h3>\n\n\n\n<p>Import refers to\nbringing goods or services into an SEZ from a location outside the boundaries\nof India by any transportation form or receiving goods or services from one\nSpecial Economic Zone Developer or Unit in the Special Economic Zone by another\ndeveloper\/unit situated in the same SEZ or another one.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">E-Way Bill and SEZ <\/h3>\n\n\n\n<p>Transporters\nneed to carry an E-Way Bill under GST at the time of transporting goods from\none site to another if the value of transported goods exceeds <strong><em>Rs. 50,000<\/em><\/strong>.\nSEZ supplies get the treatment in the same way as the treatment of other\ninter-state supplies. <\/p>\n\n\n\n<p>All the SEZ\nunits or developers must follow the same <strong><em>E-Way Bill procedures<\/em><\/strong> in the same\nmanner as others from the industry follows. In the matter of supplies from\nSpecial Economic Zones to a Domestic Tariff Area or other places, the\nregistered person involved in the movement of goods will be responsible for <strong><em>E-Way\nBill generation<\/em><\/strong>. <\/p>\n\n\n\n<p><strong><em>Example:<\/em><\/strong>\nSuppose that XYZ is a unit of Special Economic Zone situated in the state of <strong><em>Karnataka<\/em><\/strong>.\nBesides this, A is the recipient of goods produced by Special Economic Zone and\nis situated in Bangalore. <strong><em>Rs. 75000 is the value of transported goods<\/em><\/strong>.\nIn this case, the goods have moved outside the Special Economic Zone. However,\nit has got transported inside the boundaries of the same Karnataka, and thus,\nit would get considered as an Inter-state supply, and for the supply of such a\ntype, <strong><em>IGST will be applicable<\/em><\/strong>.&nbsp;\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Take_Away\"><\/span>Take Away <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In comparison to the regular supplies, the treatment procedure for <strong><em>SEZ under GST<\/em><\/strong> is different. Special Economic Zone Developer\/Unit can proceed ahead for undertaking authorized operations defined in the approval letter issued from the end of the Development Commissioner of SEZ. Services rendered to conduct authorized operations by Special Economic Zone are exempt. Our <em><a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a><\/em> experts would assist you in the process of <strong><em>GST registration<\/em><\/strong> and guide you further in case you need our guidance. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/mechanism-of-advance-ruling-under-gst\/\">\nSynopsis of the Entire Mechanism of Advance Ruling under GST\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Any supply to or by a unit of SEZ[1] under GST would get acknowledged as an Inter-state supply &amp; there will be the applicability of IGST or Integrated Goods and Supply tax. The spots for Special Economic Zones are within the national boundaries of the country. Although special economic zones exist within the same country, [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":12292,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[736],"acf":{"service_id":"68"},"authorName":"Margesh Rai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2024\/03\/Margesh.png","authorDescription":"With 10+ years of creative writing experience and 500+ blogs and thought leadership articles to his credit, Margesh Rai has left a significant impact in the field of content marketing. A published author and poet, Margesh Rai has experience writing for 20+ segments, such as Legal, Fintech, SAAS, Dairy, Real Estate, Hospitality, Recruitment, Sustainability, etc.","postViews":5692,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/12285"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=12285"}],"version-history":[{"count":9,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/12285\/revisions"}],"predecessor-version":[{"id":53555,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/12285\/revisions\/53555"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/12292"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=12285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=12285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=12285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}