Nature of Transactions for Purchase of Services from SEZ Dealer as SEZ Unit in TallyPrime

When an SEZ unit purchases services from a Regular–SEZ dealer, GST treatment depends on the mode of taxation—either with payment of IGST or under an LUT/Bond without payment of tax.

Here’s a detailed breakdown:

Table of Contents

1. Nature of Transactions for Purchase of Service from a Regular – SEZ Dealer as a SEZ unit in TallyPrime

Transaction Type: Purchase of services.
Supplier: SEZ dealer supplying services to another SEZ unit.
GST Treatment:
- With payment of IGST: The supplier charges IGST on the invoice.
- Without payment of IGST: Services are supplied under LUT/Bond.

2. GST Reporting in Returns for Purchase of Service from a Regular – SEZ Dealer as a SEZ unit in TallyPrime

1. GSTR-1 (For the Supplier)

Table 6B: If services are supplied to the SEZ unit with payment of IGST, the supplier reports the transaction here.
Table 6C: If services are supplied without payment of IGST under LUT/Bond, the transaction is reported in this table.

2. GSTR-3B (For the SEZ Unit)

Table 4A (ITC Available):
- Report ITC on services purchased with IGST payment.
Table 5 (Exempt/Non-GST Inward Supplies):
- Report inward zero-rated supplies received without IGST.

3. GST Annual Computation (GSTR-9)

Table 6: Report the purchase of services for which IGST has been paid.
Table 8: Reflect exempt or zero-rated inward supplies under LUT/Bond.

3. Examples of Purchase of Service from a Regular – SEZ Dealer as a SEZ unit in TallyPrime

Example 1: Purchase of Services with IGST

Scenario: An SEZ unit receives software development services from a Regular–SEZ dealer.
Invoice Details:
- Service Value: ₹1,50,000
- IGST Charged: ₹27,000 (18% of ₹1,50,000)

GST Reporting:

GSTR-1 (Supplier): Reported in Table 6B with IGST and service value details.
GSTR-3B (SEZ Unit):
- Table 4A: Claim ITC of ₹27,000.
GSTR-9:
- Table 6: ITC of ₹27,000 is reflected.

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

Scenario: An SEZ unit receives consulting services under LUT/Bond from another SEZ dealer.
Invoice Details:
- Service Value: ₹2,00,000
- IGST Charged: ₹0

GST Reporting:

GSTR-1 (Supplier): Reported in Table 6C with service value details under LUT.
GSTR-3B (SEZ Unit):
- Table 5: Zero-rated inward supplies without IGST are captured.
GSTR-9:
- Table 8: Exempt/zero-rated supply of ₹2,00,000 is reflected.

4. Steps to Record Purchase of Service from a Regular – SEZ Dealer as a SEZ unit in TallyPrime

Step 1: Enable GST Features

Go to F11 → Statutory & Taxation.
Enable GST and mark the company as an SEZ unit.

Step 2: Create Ledgers

Service Ledger:
- Name: Software Services (or relevant service).
- Group: Indirect Expenses.
- GST Details: Mark as SEZ.
Supplier Ledger:
- Name: Vendor XYZ.
- Group: Sundry Creditors.
- GST Details: Mark as Regular–SEZ dealer.
Tax Ledgers:
- Create an IGST ledger if the purchase includes IGST.

Step 3: Record the Transaction

Open Accounting Vouchers → Journal or Purchase Voucher.
Enter details such as:
- Supplier ledger, service ledger, and tax details.
- Specify IGST if applicable or mark the transaction as zero-rated for LUT/Bond.

Step 4: Verify GST Reports

GSTR-3B: Ensure ITC is correctly reflected for taxable services.
GSTR-1: Verify that the supplier has reported the transaction.
GSTR-9: Cross-check annual computations for accuracy.

5. Benefits of Proper Classification

Compliance: Accurate classification ensures compliance with GST laws for SEZ transactions.
ITC Claim: Facilitates seamless ITC claims for purchases with IGST payment.
Audit-Ready Records: Maintains clarity in records, simplifying GST audits and reconciliation.

By correctly recording and reporting purchases from Regular–SEZ dealers in TallyPrime, businesses can ensure adherence to GST regulations and smooth operations.