SEZ unit is not liable to pay GST under reverse cost: Authority for Advance Ruling

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MUMBAI: The Authority for Advance Ruling, Gujarat, has held that {that a} unit in a Special Economic Zone (SEZ) is not liable to pay Goods and Services Tax (GST) under the Reverse Charge Mechanism (RCM) for the providers acquired from Domestic Tariff Area (DTA) resembling providers of an advocate, offered it furnishes a Letter of Undertaking. This ruling was given in respect of an software sought by Waaree Energies Limited.
In addition to varied notifications, the AAR bench additionally relied on a clarification given by the CBIC on the same concern to a SEZ unit in IFSC-Gandhinagar, which acknowledged {that a} SEZ unit can procure RCM providers with out cost of tax if it furnishes a letter of endeavor.The Appellate Authority for Advance Rulings, Maharashtra, within the case of Portescap, a personal restricted firm, had additionally held likewise.
While advance rulings do not set a judicial precedent, they do have a persuasive impact throughout assessments. This ruling might assist SEZ items in India, who’re dealing with litigation on this concern.


Nilesh Desai
Nilesh Desaihttps://www.TheNileshDesai.com
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.

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