Purchase of goods from SEZ vendor
A special economic zone (SEZ) is a dedicated zone wherein businesses enjoy simpler tax and easier legal compliances. The transactions with SEZ’s are deemed exports and imports. The SEZ supply of goods can be made with cover of bill of entry or without cover of bill of entry.
Process for purchase from SEZ vendor has been explained in this document.
Hinweis
The tax rates and amounts below are illustrative. Confirm current SEZ and customs requirements separately.
Create a purchase invoice
- [!INCLUDE [open-search](../../includes/open-search.md)] Purchase Invoices, and then choose the related link.
- Select Vendor on Purchase Invoice header, GST vendor type should be SEZ.
- Select Item for goods or Fixed Asset on the invoice line. Check GST Group Code, HSN/SAC Code, and GST Credit.
- Enter GST Assessable Value and Custom Duty Amount on the goods line as applicable.
- If the invoice is without a bill of entry, select Without Bill Of Entry on the header. This option is available only for SEZ vendors.
- Otherwise, enter Bill of Entry No., Bill of Entry Date, and Bill of Entry Value before posting.
The examples use INR 11,000 as the assessable value before adding INR 1,000 of basic customs duty. The resulting GST calculation base is INR 12,000.
For example, purchase invoice is issued for INR 10000, Custom Duty INR 1000, GST Assessable Value INR 11000 (IGST @18%), has to be charged. Calculation base: (18% on 11,000 GST Assessable Value + 1,000 BCD) (12,000*18%)
GST calculation appears in the Fact Box as following:
Component Amount GST Assessable Value 11,000 Custom Duty (BCD) 1000 GST Base Amount 12,000 IGST 2160 GL Entries for import of goods with input tax credit available from SEZ vendor with cover of Bill of Entry are as following:
Particulars Amount Purchase Account (Transactional Value+ BCD) 11000 IGST Receivable Account (on GST Assessable Value + BCD) 2160 Customs House Account (GST Amount + BCD) -3160 Vendor Account (Transaction Value) -10000 GL Entries for import of goods with input tax credit available from SEZ vendor without cover of Bill of Entry are as following:
Particulars Amount Purchase Account (Transactional Value+ BCD) 11000 IGST Receivable Account (on GST Assessable Value + BCD) 2160 Vendor Account (Transaction Value) -13160 GL Entries for import of goods without input tax credit available from SEZ vendor with cover of Bill of Entry are as following:
Particular Amount Purchase Account 13160 Custom House Account -3160 Vendor Account (Transaction Value) -10000 GL Entries for import of goods without input tax credit available from SEZ vendor without cover of Bill of Entry are as following:
Particulars Amount Purchase Account 13160 Vendor Account (Transaction Value) -13160 GL Entries for import of fixed asset with input tax credit available from SEZ vendor with cover of Bill of Entry are as following:
Particular Amount Fixed Asset Increased During the Year Account (Transactional Value+ BCD) 11000 IGST Receivable Account (on GST Assessable Value + BCD) 2160 Customs House Account (GST Amount + BCD) -3160 Vendor Account (Transaction Value) -10000 GL Entries for import of fixed assets with input tax credit available from SEZ vendor without cover of Bill of Entry are as following:
Particulars Amount Fixed Asset Increased During the Year Account (Transactional Value+ BCD) 11000 IGST Receivable Account (on GST Assessable Value + BCD) 2160 Vendor Account (Transaction Value) -13160 GL Entries for import of fixed asset without input tax credit available from SEZ vendor with cover of Bill of Entry are as following:
Particular Amount Fixed Asset Increased During the Year Account 13160 Custom House Account -3160 Vendor Account (Transaction Value) -10000 GL Entries for import of fixed asset without input tax credit available from SEZ vendor without cover of Bill of Entry are as following:
Particular Amount Fixed Asset Increased During the Year Account 13160 Vendor Account (Transaction Value) -13160
Hinweis
The GST calculation process for SEZ vendor is same as for an Import vendor.