What is the Meaning of Special Economic Zone Under GST?
- Blog|GST & Customs|
- 2 Min Read
- By Taxmann
- Last Updated on 31 December, 2020
SEZ Treatment Before GST:
Section 26 of the SEZ Act grants exemption, to every SEZ Unit and developer, from: • Any duty of customs under Customs Act, 1962 on goods or services imported into or exported from India, • Any duty of excise under Central Excise Act, 1944 • Service Tax under Finance Act, 1994 • Levy of taxes on sale and purchase of goods other than newspaper • The securities transaction tax leviable under Section 98 of the Finance act, 2004. Any transaction with or by SEZ Unit or SEZ Developer shall be exempted from any indirect tax law.
SEZ Under GST:
a. IGST Exemption:
Any supply to SEZ Unit has been made exempt vide Notification No. 64/2017 – Customs dated 5th July, 2017.
Any supply from SEZ Unit to DTA shall be treated as Imports and would be taxable under Reverse Charge Basis at the end of the recipient. Rest other thing it will be considered as part of India.
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