Purchases by SEZ Companies in TallyPrime: 3 Steps + Example

Purchases made by SEZ (Special Economic Zone) companies in TallyPrime are treated distinctly under GST rules due to the benefits SEZ companies enjoy.

This process requires proper setup and recording to ensure compliance with GST laws.

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1. Understanding Purchases by SEZ Companies in TallyPrime

1. Zero-Rated Purchases:

SEZ companies can procure goods and services without paying GST, either under a LUT (Letter of Undertaking) or Bond.

2. With Payment of Tax:

If GST is charged, SEZ companies can claim a refund of the tax paid on such purchases.

Example Scenario: An SEZ company, ABC Ltd., procures raw materials worth ₹1,00,000 from a domestic supplier under LUT.

No GST is charged, but the purchase must be recorded as zero-rated.

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2. Steps to Record Purchases by SEZ Companies in TallyPrime

1. Configure GST for SEZ Purchases

1. Go to Gateway of Tally > Features (F11) > Statutory & Taxation.
2. Enable GST and set the relevant GST details.
3. In the supplier ledger, under GST details, select the option Applicable for SEZ.

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2. Record SEZ Purchase Transaction

1. Go to Accounting Vouchers (F9) and open the Purchase Voucher.
2. Select the Supplier Ledger configured for SEZ.
3. Enter the purchase details:
   • Item: Raw Material
   • Quantity: 100 units
   • Rate: ₹1,000 per unit
   • GST: Zero-rated (if under LUT)
4. Save the voucher.

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1. Example

Scenario:
ABC Ltd., an SEZ company, purchases 200 units of raw material at ₹500 per unit from a supplier under LUT.

Steps:

1. In the Purchase Voucher, select the supplier as XYZ Pvt. Ltd. (SEZ enabled).
2. Enter:
   • Item: Raw Material
   • Quantity: 200
   • Rate: ₹500
   • GST: ₹0 (zero-rated)
3. Total Purchase Amount = ₹1,00,000.
   The voucher reflects the zero-rated purchase, ensuring compliance with SEZ GST regulations.

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3. GST Reporting for SEZ Purchases

• Go to Display > Statutory Reports > GST Reports > GSTR-2.
• Verify that the SEZ purchase is captured correctly as zero-rated inward supply.

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3. Benefits of Managing SEZ Purchases in TallyPrime

1. GST Compliance: Ensures proper classification of zero-rated and taxable purchases.
2. Accurate Reporting: Simplifies GST return filing by auto-classifying SEZ purchases.
3. Audit Readiness: Detailed records of SEZ purchases help during audits.

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4. Conclusion

TallyPrime streamlines the process of recording and managing SEZ purchases, ensuring accurate GST compliance and reporting.

With proper configuration and recording, businesses can efficiently handle SEZ-related transactions without errors or complications.