Breif Issue :

Facts And Issues Of The Cases :

1. The hotel being located in non-processing zone of Dahez Special Economic Zone whether liable to pay GST on all the services provided by it to the clients located in SEZ which inter-alia included supply of services by way of providing accommodation services, supplying food and beverages and supplying services ancillary to providing accommodation services?

2. Under extreme circumstances, if the hotel is required to provide accommodation services to a visitor other than a visitor located in SEZ, whether GST is required to be paid?

The term “customs territory” cannot be equated to the territory of India. Further, the interpretation advanced by the appellant would lead to a situation where a Special Economic Zone would not be subject to any laws of India whatsoever. The sub-section (1) of Section 53 of the SEZ Act, 2005 provides a deeming fiction whereby the Special Economic Zone shall be deemed to be a territory outside the customs territory of India and that too for the specific purposes of undertaking the authorized operations.

As per Section 8 of the IGST Act, supply of goods or services to or by SEZ developer or unit  would not be considered as intrastate supply. In accordance with the Section 7 & 8 of IGST Act all the supply of goods or services made by or to SEZ Co-developer would be considered as interstate supply and the levy of  IGST is attracted at the applicable rate. Meaning of Zero Rated supply is (a) export of goods or services or both ; or (b) supply of goods or services or both to a SEZ developer or SEZ Unit. Any SEZ unit/developer making interstate supply to DTA would be liable to pay IGST under IGST Act. Therefore,  supply of  services by the SEZ unit or Developer from SEZ to DTA would be covered under the normal course of supply.