GST Returns: Purchase of Services from a Regular Dealer as an SEZ Unit in TallyPrime

When a Special Economic Zone (SEZ) unit purchases services from a Regular dealer, these transactions are treated under specific GST provisions.

The treatment depends on whether the supply of services is made under payment of IGST or LUT/Bond (without payment of tax).

Here’s a detailed explanation:

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1. Nature of Transactions for Purchase of Services from a Regular Dealer as an SEZ Unit in TallyPrime

1. Transaction Type: Purchase of services.
2. Supplier Type: Regular dealer.
3. GST Treatment:
   • Zero-rated supply:
     • With payment of IGST: Supplier charges IGST in the invoice.
     • Without payment of IGST: Services are supplied under LUT/Bond, and no tax is charged.
4. ITC Eligibility: Input Tax Credit (ITC) is available for services purchased with IGST payment.

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2. GST Reporting in Returns for Purchase of Services from a Regular Dealer as an SEZ Unit in TallyPrime

1. GSTR-1 (For Supplier)

• Table 6B: Services supplied to SEZ units with payment of IGST.
• Table 6C: Services supplied to SEZ units without payment of IGST under LUT/Bond.

2. GSTR-3B (For SEZ Unit)

• Table 4A (ITC Available):
  • Record ITC on IGST paid for zero-rated services.
• Table 5 (Exempt/Nil-rated/Non-GST inward supplies):
  • Capture zero-rated inward supplies without IGST.

3. GST Annual Computation (GSTR-9)

• Table 4: ITC on services with IGST payment.
• Table 5: Exempt or zero-rated inward supplies under LUT/Bond.

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3. Examples of Purchase of Services from a Regular Dealer as an SEZ Unit in TallyPrime

Example 1: Purchase of Services with IGST

• Service Value: ₹1,00,000
• IGST Charged: ₹18,000

GST Reporting:

• GSTR-1 (Supplier): Table 6B (₹1,00,000 service value and ₹18,000 IGST).
• GSTR-3B (SEZ Unit):
  • Table 4A: Claim ITC of ₹18,000.
• GSTR-9:
  • Table 4: Reflects IGST ITC of ₹18,000.

Example 2: Purchase of Services Without IGST (Under LUT)

• Service Value: ₹1,00,000
• IGST Charged: ₹0

GST Reporting:

• GSTR-1 (Supplier): Table 6C (₹1,00,000 service value under LUT).
• GSTR-3B (SEZ Unit):
  • Table 5: Zero-rated supply without IGST.
• GSTR-9:
  • Table 5: Exempt/Zero-rated supply.

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4. Steps to Record in TallyPrime

1. Enable GST and SEZ Features

• Navigate to F11 → Statutory & Taxation.
• Enable GST and select SEZ Unit.

2. Create Necessary Ledgers

• Expense Ledger:
  • Name: Consultancy Charges (or relevant service).
  • Group: Indirect Expenses.
  • GST Details: Select SEZ nature of supply.
• GST Ledger:
  • IGST Ledger under Duties & Taxes.
• Supplier Ledger:
  • Add GSTIN and mark as Regular dealer.

3. Record the Transaction

• Open Voucher → Journal or Purchase (depending on the mode of recording).
• Enter service description, GST classification, and IGST details (if applicable).
• If LUT is used, set the tax rate as zero.

4. Verify GST Reports

• GSTR-3B: Display GST Reports → GSTR-3B to check ITC and supplies.
• GSTR-9: Use the Annual Computation to validate annual returns.

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5. Benefits of Accurate Reporting in TallyPrime

1. Compliance: Ensures GST compliance as per SEZ provisions.
2. Input Tax Credit: Maximizes ITC claim for IGST-paid services.
3. Transparency: Simplifies GST audits and assessments.
4. Error-free Filing: Automates data population in GST returns.

By following these steps, SEZ units can efficiently manage and report transactions involving services purchased from Regular dealers in TallyPrime, adhering to GST norms.