Relevant GST law
Whether SEZ unit is required to pay GST on receipt of supplies covered under reverse charge mechanism ?
FREQUENTLY ASKED QUESTIONS (FAQs) dated 15 December 2018
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, the supplier is not liable to pay GST as the supply is under reverse charge mechanism. The recipient is considered as deemed supplier. Therefore, SEZ has to pay GST in this case.
