AMCHAM submitted a request for consideration to Chairman CBIC, GST Council, GST Policy Wing, CBIC and SEZ Division, Ministry of Commerce on select GST and regulatory issues affecting SEZ units. The request highlighted in detail, the following issues :
- Endorsement requirements for procurement of services by SEZ units, which in practice has evolved into a compliance process not envisaged under the GST or SEZ laws.
- Denial of zero-rating benefits on group health insurance services provided to employees of SEZ units, despite such services being part of general insurance services.
- Rejection of GST refund claims filed by SEZ units with respect to export supplies, leading to avoidable litigation and inconsistent interpretation across jurisdictions.
- Levy of GST in case of goods delivered to SEZ in India on the directions of foreign customer.
- Clarification regarding requirement of filing SOFTEX/EDF in respect of supply of software from one SEZ unit to another SEZ unit.
