XYZ Ltd. Intend to supply the goods to SEZ on payment of GST under claim for refund. In the tax invoice they need to show the GST amount for claiming the refund. However, the SEZ customer will not be paying this GST to XYZ. Under this situation what is the remedy for XYZ? Can they show Value + GST= Total Less Discount to the extent of GST amount? Or any other appropriate method?
According to CGST laws, the supplies made with the payment of IGST to a SEZ Developer or SEZ Unitholder is liable for the payment of IGST at applicable rates. The invoice will be generated in Indian currency with a proclamation that ‘SUPPLY MEANT FOR SEZ DEVELOPER/UNIT WITH PAYMENT OF INTEGRATED TAX’. The declaration made with the mentioned option will make the refund procedure fast. The IGST mentioned in the invoice is not charged from the customer, it is just for the acknowledgement purposes.
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