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- Whether SEZ unit is required to pay GST on receipt of supplies covered under reverse charge mechanism ?
Whether SEZ unit is required to pay GST on receipt of supplies covered under reverse charge mechanism ?
Issue Favourable to Tax Payer ?:- yes
Held - We find that the FAQs on GST, 3rd edition, dated 15.12.2018, on the question of payment of IGST under RCM, when received by an SEZ unit has clarified as under:
Q 41. Whether SEZ unit or developer needs to pay IGST when it received supplies which are under reverse charge mechanism?
Ans. All supplies to SEZs are zero rated. However, the suppliers are given two options. In this case, .....
Issue Favourable to Tax Payer ?:- yes
Held - From the provisions of section 16 (1) and Section 5 (3) of IGST Act it is clear that the intention of the legislature is not to tax the supplies made to a unit in SEZ or a SEZ developer, which has been made zero rated under clause (b) of section 16 (1) of the IGST Act. 2017. By virtue of deeming provision under section 5 (3) of the IGST Act, 2017, the levy on procurement of services specified in Notification 13/2017 CT (Rate) falls upon.....
Issue Favourable to Tax Payer ?:- no
Held - While the government, vide the said Section 5 (3) of the IGST Act, has notified specified categories of goods and services where tax shall be paid by the recipient on reverse charge basis, Notification No. 10/2017- I.T. (Rate) dated 28.06.2017, as amended by Notification No. 3/2018-I.T. (Rate)-dated 25.01.2018 clearly states that in case of supply of services by any local authority, by way of renting of immovable property, to a person r.....
- Whether reimbursement of expenses is leviable to GST?
- Whether input tax credit is admissible if invoice/debit note does not appear in Form GSTR-2A/2B or tax is not paid by supplier ?
- Whether marketing and sales promotion services to customers located outside India is intermediary or export of services ?
- Whether order / show cause notice is valid if passed without pre-show cause notice consultation or GST DRC-01 (summary SCN) or GST DRC-01A (tax intimation notice) ?
- Whether recovery proceedings can be initiated if assessee is willing to file an appeal ?
- Whether input tax credit can be transferred to the transferee entity in case of an inter-state business transfer ?
- Whether interest is payable for the period during which the reply to the deficiency memo remains pending ?
- Whether combined show cause notice can be issued covering multiple financial years ?
- Whether tax can be recovered by Department without prior intimation in Form DRC-01D ?
- Whether a penalty equal to 200% of the tax amount can be demanded in case of detention or seizure of goods ?
