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CMA Final · Indirect Tax Laws and Practice · Zero Rated Supplies and Deemed Exports

Himalaya Engineering Ltd supplies goods to a Special Economic Zone unit and wishes to claim a refund of the tax paid on this supply. Under Rule 89(1), when may the supplier of the goods file the application?

The supplier of goods to an SEZ unit may file the refund application only after the goods have been admitted in full in the Zone for authorised operations, as endorsed by the specified officer of the Zone. Dispatch, payment, or a realisation certificate does not start the right to apply.

  1. AAfter the goods have been admitted in full in the SEZ for authorised operations, as endorsed by the specified officer of the ZoneCorrect
  2. BImmediately after the goods are dispatched from the supplier's premises
  3. CAfter the SEZ unit has paid the invoice value to the supplier
  4. DAfter the Bank Realisation Certificate for the supply is received

Explanation

The first proviso to Rule 89(1) requires the supplier of goods to the SEZ to file only after the goods have been admitted in full for authorised operations, with the endorsement of the specified officer. Dispatch, payment, or a BRC does not trigger the right to apply.

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