Supply To SEZ Under GST Regime

• April 28, 2020
• CA Chandan Agarwal's Office

We will discuss SUPPLY TO SEZ under GST regime.

Around the world, in line with the destination principle sanctioned by the World Trade Organization, Exports are free of VAT/GST and imports are taxed on the same basis and at the same rate as that of Local Production. So, by taking exports at zero rated it is actual, based on destination based taxation principle of WTO, and what is free of VAT is termed as zero rated where costs and overheads can be recovered. GST thus being based on destination principle, exports from a country of origin go out at zero-rated tax, after exempting or refunding the input taxes that may be given to the resources used in its manufacturing. The OCED guidelines on neutrality of VAT in international trade lay this down as the first guideline.

Read on me: https://taxguru.in/goods-and-service-tax/supply-to-sez-under-gst-regime.html