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[F. No. DGEP/SEZ/09/2017]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
New Delhi, the 30th June, 2017
Notification No. 15/2017 - Integrated Tax (Rate): Notification for Exemption from Integrated Tax to SEZ
GST: [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Service Tax Act, 2017 (13 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts all goods or services or both imported by a unit or a developer in the Special Economic Zone, from the whole of the integrated tax leviable thereon under sub-section (7) of section 3 of the Customs Tariff Act, 1975 (51 of 1975) for authorized operations.
2. This Notification shall come into force with effect from the 1st July, 2017.
(Dharmvir Sharma)
Under Secretary to the
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 15/2017 — Integrated Tax (Rate)
Q1: What is Notification 15/2017 IGST?
Answer: It provides IGST exemption for SEZ imports.
It allows SEZ units and developers to import goods/services without paying IGST, subject to conditions.
Q2: Is IGST fully exempt for SEZ?
Answer: Yes, for imports used in authorized operations.
But exemption is conditional. If conditions are not met, tax may be demanded.
Q3: Does this apply to domestic supply to SEZ?
Answer: No.
Domestic supply is treated as zero-rated, not exempt. Different rules apply.
Q4: What are authorized operations?
Answer: Activities approved by SEZ authority.
These are specific business activities permitted for the SEZ unit.
Q5: Who can claim this exemption?
Answer: SEZ units and developers.
Other businesses cannot directly claim it unless supplying to SEZ under zero-rating.
Q6: Is documentation mandatory?
Answer: Yes, absolutely.
Without proper records, exemption may be denied during audit.
Q7: What if goods are used outside SEZ?
Answer: Exemption may be reversed.
Tax along with penalty can be demanded.
Q8: Is ITC involved here?
Answer: No IGST is paid, so no ITC on import.
But ITC may apply in other transactions.
Q9: Is this benefit automatic?
Answer: No.
You must meet all conditions and approvals.
Q10: Does it apply to services also?
Answer: Yes.
Both goods and services imported are covered.
Q11: What is the biggest risk?
Answer: Misuse of exemption.
Using goods outside authorized operations is a common issue.
Q12: Can SEZ sell in domestic market?
Answer: Yes, but GST applies.
Such transactions are treated differently.
Download PDF: Notification No. 15/2017 — Integrated Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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