GST – Cross Border Transactions Including SEZ, EOU and FTWZ

GST – Cross Border Transactions Including SEZ, EOU, and FTWZ

Basic Provision

Import and Export

Import of Goods [S 2(10)]

Bringing goods into India from a place outside India

Export of Goods [S 2(5)]

Taking goods out of India to a place outside India

Interstate Supply – Section 7

Section 7(2) – Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce

“customs frontiers of India” means the limits of a customs area as defined in section 2 of the Customs Act, 1962

Section 2(11) of Customs act, 1962 “customs area” means the area of a customs station or a warehouse and includes any area in which imported goods or export goods are ordinarily kept before clearance by Customs Authorities;

Section 7(4) – Supply of services imported into the territory of India shall be treated to be a supply of services in the course of inter-State trade or commerce.

Services: Import and Export

Export of Services [S. 2(6)]

• Supplier located in India
• Recipient of Services located outside India
• Payment in convertible forex or Indian Rupees if permitted by RBI
• The place of Supply outside India
• Supplier and Recipient not merely the establishment of a distinct person

Import of Services [S. 2(11)]

• Supplier located outside India
• Recipient Located in India
• Place of Supply in India

Related Topic:
How to change status from/to SEZ in GST registration

Zero Rate Supplies – Section 16

What is Zero-rated supply

• Export of goods or services or both

• Supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit

Benefits of Zero-rated supply

➢ Supply goods or services under LUT/Bond and claim a refund of unutilized ITC

➢ Supply goods or services on payment of IGST and claim a refund of IGST paid

Import of Goods

IGST Act, 2017 [Proviso to Section 5]

Provided that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962.

Customs Tariff Act, 1975 [ Section 3(7)]

Any article which is imported into India shall, in addition, be liable to integrated tax at such rate, not exceeding forty percent. as is leviable under section 5 of the Integrated Goods and Services Tax Act, 2017 on a like article on its supply in India, on the value of the imported article as determined under sub-section (8) 8[or sub-section (8A), as the case may be.

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