How To Supply Material To Sez

watch_later 3 years, 3 months ago

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.

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1 Answer

Pulkit Sharma watch_later 3 years, 3 months ago

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:

  • Supply of goods with payment of IGST, or
  • Without Payment of IGST and supplying after executing a bond or Letter of Undertaking

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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