Q. 739 whether RCM is applicable on SEZ unit for the services taken by SEZ unit for security services from a partnership firm\individual, if the supplier had filled LUT or not ? 

Ans. SEZ is not required to pay GST under RCM in the above-mentioned case as supply to SEZ is deemed as zero-rated supply, provided the supplier is furnishing LUT. And, N.No. 18/2017- ITR provides for IGST exemption of services imported by a unit for authorized operations. Specific provisions will prevail over general provisions. However, the above matter is a very subjective matter of litigation. You are advised to take detailed opinions.

Q. 738 Please let us know whether the ITC available on payment of CGST @2.5% and SGST @2.50% on SAC 996311.

Ans. Hotel Accommodations rated 6%/9% – ITC allowed

Restaurant Services rated 2.5 % CGST, 2.5% SGST- ITC not allowed

Q. 737 MY CLEINT IS ENGANGED IN THE BUSINESS OF OLD USED CAR SALE PURCHASE AND HIS TOURNOVER CROSS 5CR IN F.Y. 2022-23. NOW MY QUERY IS THAT WHETHER HE HASE TO MAKE E-INVOICING OR NOT. HE SALE PURCHASED USED CAR AND SOLD IN AFTER ADDING COMISSION ON IT. HE SOLD USED CAR TO B2B CUSTOMER. BUT AS USED CAR COULD NOT APPLY GST AS EXEMPTED OR NIL RATE. BUT COMISSION PART IS ATTRACT GST @18%. SO I HAVE TO MAKE E INVOICING OF THAT INVOICE OR NOT. 

Ans. You are required to raise an e-invoice for the commission part.