Provisions under Section 16 of the Integrated Goods and Services Tax (IGST) Act, 2017 relating to “Zero Rated Supply”, are as under:
Section 16 of IGST Act 2017: Zero Rated Supply (CHAPTER VII – ZERO RATED SUPPLY)
(1) “zero rated supply” means any of the following supplies of goods or services or both, namely:–
(a) export of goods or services or both; or
(b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.
(2) Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services Tax Act, credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply.
(3) A registered person making zero rated supply shall be eligible to claim refund under either of the following options, namely:–
(a) he may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit; or
(b) he may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied,
in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder.
Amendments History:
1. CBEC notifies 1st July 2017 as the Commencement date for Section 16 of the IGST Act 2017, vide Notification 3/2017 Integrated Tax.
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Govt. has notified the Integrated Goods and Services Tax (IGST) Act, 2017 on 12 April, 2017, followed with Integrated Goods and Services Tax (IGST) (Amendment) Act, 2018 on 30 Aug. 2018. CBEC/ CBIC has subsequently issued various Notifications on commencement date of various Sections/ Provisions of the IGST/ Amendment Acts from time to time, except where specifically mentioned in the respective IGST/ Amendment Acts.
| CBIC Updates (GST) |
| GST Circulars, Notifications, Press Releases, Orders, etc. issued by the Central Board of Indirect Taxes & Customs (CBIC) in different years, along with Section-wise/ Rule-wise Text of GST Acts/ Rules: |
| CGST: CGST Act/ Definitions, CGST Rules |
| IGST: IGST Act/ Definitions, IGST Rules |
| UTGST: UTGST Act/ Definitions, UTGST Rules |
| CBIC Circulars (CGST/ IGST/ UTGST): 2021, 2020, 2019, 2018, 2017 |
| CBIC Central Tax (CGST) Notifications: 2021, 2020, 2019, 2018, 2017 |
| CBIC Central Tax Rate (CGST Rate) Notifications: 2020, 2019, 2018, 2017 |
| CBIC Integrated Tax (IGST) Notifications: 2020, 2019, 2018, 2017 |
| CBIC Integrated Tax Rate (IGST Rate) Notifications: 2020, 2019, 2018, 2017 |
| CBIC UT Tax (UTGST) Notifications: 2020, 2019, 2018, 2017 |
| CBIC UT Tax Rate (UTGST Rate) Notifications: 2020, 2019, 2018, 2017 |
| CBIC Compensation Cess Notifications: 2020, 2019, 2018, 2017 |
| CBIC Compensation Cess Rate Notifications: 2020, 2019, 2018, 2017 |
| CBIC Orders (CGST/ IGST/ UTGST): 2020, 2019, 2018, 2017 |
| CBIC Press Releases: 2020, 2019, 2018, 2017 |
| Note: For Official/ updated copy, please visit the CBIC website. |
Does the GST exemption for SEZ units applicable for all products which are sold to them or only those which are used by them for manufacturing and exports? To be specific we deal in hot beverages and snacks and we sell such items to SEZ units which are used by their employee’s.
At the time of export of goods, shipping bill filed with 5% IGST and procured the goods locally with CGST 2.5% and 2.5% SGST. At the time of filing GSTR-3B, IGST liability adjusted against the input of local purchases. Whether the input claim tantamounts to payment under section 16 or not? to claim refund from the department.