We are a registered firm with GSTIN, getting purchase orders from our clients in SEZ. They are saying we need not to add tax in bill. Kindly enlighten the process to supply material to them.
Supply of goods to SEZ units are Zero Rated supplies.
You can supply to SEZ without charging any GST on goods supplied.
Input credit on purchases of Raw Material or stock in trade is also available.
Procedure to sell to a SEZ is similar to export of goods.
You have 2 options:
With first option, IGST needs to be paid on supply of goods which can be claimed as refund.
Under second option a Bond needs to be executed with a bank guarantee.
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