(Amendments)Rules,2018whichprovidesforthenecessaryalignmentwiththeGST laws by carryingout theamendmentsinrule30 of theSEZRules,2006inasmuchas Domestic Tariff Area supplier supplying goods or services to a Unit or Developer shall clear the goods or services, as in the case of zero-rated supply as per provisions of section 16 of the Integrated Goods and Services Tax Act. 2017 either under bond or legal undertakingorunder anyotherrefundprocedurepermittedunderGoodsandServices Tax laws or Central Excise law, or as duty or tax paid goods under claim of rebate, on the cover of documents laid down under the relevant Central Excise law for the purpose of export by a manufacturer or supplier. He also contended that the Notification No. 10/2017-1.T. (Rate) dated 28.06.2017 ought to be read harmoniously with the SEZ (Amendment) Rules, 2018, which would lead to the scenario where they would have two options, i.e., either pay the tax on the services received and claim refund thereof, or avail the facility of LUT wherein they would not be required to pay tax on the impugned services. He has also contended that in order to implement the Notification No. 10/2017 I.T. (R) dated 28.06.2017, the SEEPZ SEZ, which is also a SEZ developer, has to be construed as a local authority as per the provisions of section 2(69) of the CGST AcL 2017. As such, the transaction under consideration, i.e., renting of immovable property, would turn out to be between DTA and a SEZ unit, and hence, they would be in position to avail the benefit of LUT as per the SEZ (Amendment) Rules, 2018, and accordingly, they would not be required to pay any GST on the receipt of impugned services.
