Uniform list of services to be followed in SEZ - GST Clarification by Ministry of Commerce
A clarification has been issued by Ministry of Commerce regarding the Uniform list of services for SEZs under the GST regime. The default list of services allows for exemption of service tax/ GST when they are rendered by the SEZ unit.
Upfront exemption from payment of taxes on authorised services is an indirect tax benefit extended to SEZ units for promotion of exports. For all other services which are not a part of the authorised list, SEZ units have to first pay taxes and then claim a refund.
To streamline the approval process, and minimise approvals, a uniform list was issued by Ministry of Commerce in consultation with Industry, under the service tax regime. However, the list was not grandfathered under the GST regime, leading to uncertainty for SEZ units, with potential denial of exemptions as companies file returns under GST regime, thereby denying a key benefit under SEZ scheme.
http://sezindia.gov.in/writereaddata/GeneralNotifications/Uniform%20list.pdf
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