Skip to content

CMA Intermediate · Direct and Indirect Taxation · Registration

Meera Exports Ltd has a unit in a Special Economic Zone in Gujarat and also has a factory outside the SEZ in Gujarat. Under section 25 of the CGST Act, 2017, what is the registration position?

The SEZ unit must obtain a separate registration distinct from the place of business outside the SEZ in the same State. A single State registration cannot cover both, regardless of PAN being the same.

  1. AA single registration for Gujarat covers both the SEZ unit and the factory
  2. BThe SEZ unit must apply for a separate registration, distinct from the place of business outside the SEZ in the same StateCorrect
  3. CThe factory outside the SEZ must register in the SEZ's registration
  4. DRegistration is optional for the SEZ unit if the PAN is the same

Explanation

The second proviso to section 25(1) states that a person having a unit in an SEZ, or being an SEZ developer, must apply for a separate registration, distinct from the place of business outside the SEZ in the same State. A single registration under section 25(2) is therefore not available for both.

Did you get it right without looking?

One question tells you little. A timed set on Registration shows your real accuracy, how long you take and where you lose marks.

Practise RegistrationFree diagnostic mock

More Registration questions