Zero-rated supplies refer to those supplies that are subject to GST at 0% rate. When a business supplies goods or services to an SEZ unit or developer, it is considered as a zero-rated supply, which means that there is no GST levied on such supplies. However, the GST paid on input services and goods used in making such supplies is eligible for a refund.
1. The supplier must have paid the GST on input services and goods used in making the zero-rated supplies to SEZ units or developers.
2. The supplier must have filed the GST returns as per the GST regulations.
3. The SEZ unit or developer must not have claimed any input tax credit on the supplies received from the supplier.
4. The supplier must have a valid GST registration.
5. The supplier must file a refund application in Form GST RFD-01 for the relevant period.
6. The supplier must submit all the necessary documents required for claiming the refund.
1. Copies of invoices issued for zero-rated supplies made to SEZ units or developers.
2. Copies of invoices or bills of input services and goods used in making the zero-rated supplies.
3. Payment receipts for the GST paid on input services and goods used in making the zero-rated supplies.
4. A statement showing the details of zero-rated supplies made to SEZ units or developers.
5. A statement showing the details of the GST paid on input services and goods used in making the zero-rated supplies.
Once the supplier submits the refund application along with the necessary documents, the GST department will verify the details and process the refund within a stipulated time. If there are any discrepancies or errors in the refund application, the GST department will communicate the same to the supplier.It is important to note that the refund application for zero-rated supplies to SEZ units or developers must be filed within two years from the end of the relevant financial year in which the supplies were made. The GST department may reject the refund application if it is filed beyond the prescribed time limit.
In conclusion, the process of claiming a refund for the GST paid on input services and goods used in making zero-rated supplies to SEZ units or developers involves fulfilling certain conditions and submitting the necessary documents along with the refund application. By following the prescribed procedure and ensuring compliance with GST regulations, a business owner can claim a refund for the GST paid on such supplies.
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