SEZs await settling of some GST issues

Under the Integrated GST Act, supply of goods or services to SEZ developers or units are zero-rated

It is over a month since the Goods and Services Tax (GST) laws came into effect. And, a number of issues on these relating to Special Economic Zones (SEZs) remain unresolved.

Under Section 16 (1) of the Integrated GST Act (IGST), supply of goods or services or both to SEZ developers or units are zero-rated. Notification 64/97-Cus dated July 5 exempts IGST on all goods imported by such units or developers. Similarly, notification 18/2017-Integrated Tax (Rate) of the same date exempts IGST on all services imported by SEZ units or developers for authorised operations. Rule 10 and 27 (1) of